discharge by performance Flashcards
What is the usual method of discharge and what does it include?
- complete performance
> both parties must fully perform what was agreed
> performance must be completed and exact
Cutter v Powell
A sailors widow couldn’t claim partial payment because the contract required full performance
What are the exceptions to the rule of performance?
- prevention of performance
- severable contracts
- substantial performance
- acceptance of part performance
- effect of time in a contrast
Explain prevention of full performance
If one party prevents the other party from completing the contract , the innocent party can claim on a quantum merit basis
Planche v Colburn
an author was prevented from finishing a book and was entitled to partial payment
Explain severable contracts
- some contracts ave divisible obligations, so a breach of one part doesn’t avoid the whole contract
Ritchie v Atkinson
a ship was paid per ton of cargo delivered, even though it delivered less than expected
Explain substantial performance
- if a party almost completes their obligations, they may still be entitled to payment minus the cost of fixing minor issues
> However, there is no fixed definition of the word substantial
Darin & Co v Lee
payment was due, deducting the cost of necessary repairs
Explain acceptance of part performance
if one party agrees to accept partial work, they must pay for what has been done
Sumpter v Hedges
if a party has no choice but to accept partial performance, this does not count as agreement
Explain effect of time in a contract
Time is considered a condition if:
1) the contract expressly states “time is of the essence”
2) time is critical due to the contracts nature
3) one party misses a deadline and the other demands a new completion date
