Discharge Of Contract

Question 1

What is meant by discharge of contract?

Answer 1

Ending obligations under the contract, usually when primary obligations have been met

Question 2

What case contains the strict rule on performance?

Answer 2

Cutter v Powell

Question 3

Cutter v Powell Strict Rule

Answer 3

Strict/perfect rule should be complete performance of all obligations then the contract is discharged

Question 4

Cutter v Powell Case

Answer 4

Cutter died on voyage. Failed to complete contract so no obligation to pay

Question 5

Acros Ltd v E A Ronaasen & Son (Quote)

Answer 5

Wooden staves sixteenth of an inch narrower than asked

Lord Atkin “a ton does not mean about a ton, or a yard about a yard, if a seller wants a margin he must and in my experience does stipulate for it”

Question 6

What case apples the strict rule even in an ancillary obligation?

Answer 6

ReMoore & Co v Landover & Co

Question 7

ReMoore & Co v Landover & Co

Answer 7

Quantity tins where sent in different to description but total quantity correct - i strict rule applied then packaging is included in description

Question 8

What dies “De minimise non curat léx” mean?

Answer 8

“the law does not concern itself with trifles”

Trifles - matters of no value or importance

Question 9

Reardon Smith Line Ltd v Hansen-Tangen

Answer 9

Judge would not accept repudiation where term was mere technicality discrimination shipyard and job number

Question 10

What are some exceptions to the strict rule?

Answer 10

• Divisible contract
• Part performance
• Substantial performance
• Prevention of performance
• Tender of performance
• Time of performance

Question 11

What is meant by a divisible contract + case?

Answer 11

Made up of various parts that can be discharged separately

Taylor v Webb

Question 12

Taylor v Webb

Answer 12

Contract divisible - lease premises - repair and maintain - tenant could not legitimately refuse payment

Question 13

What is acceptance of part performance + case?

Answer 13

Shortfall of delivery or service not carried out fully - only when victim has choice of whether or not to accept

Sumpter v Hedges

Question 14

Sumpter v Hedges

Answer 14

Builder ran out of money unable to complete work. Landowner had no choice but to complete work as otherwise would have had partially complete buildings

Question 15

What is meant by Substantial Performance + case?

Answer 15

Party has done substantially what is required - party can recover amount appropriate to what has been done

Dakin & Co v Lee

Question 16

Dakin & Co v Lee

Answer 16

Builder carried out work but some carried out carelessly - builder able to claim price of work less amount representing value of defective work

Question 17

Hoenig v Isaacs

Answer 17

Decorator decorating flat - work defective - balance was payable less the amount of defects (£55)

Question 18

Bolton v Mahadeva

Answer 18

Electrician hired to install central heating - didn’t work properly not substantial performance £174 worth of defects in system costing £560 (31% defective)

Question 19

What is meant by prevention of performance + case?

Answer 19

One party prevents the other from carrying out obligations - means strict rule can’t apply - party trying to perform may have an action for damages

Planche v Colburn

Question 20

Planche v Colburn

Answer 20

Publisher hired author to write book - publisher abandoned series - writer entitled to recover fee for wasted work

Question 21

What is meant by tender of performance + case?

Answer 21

Party has offered to complete his obligations but other side has unreasonably refused performance

Startup v Macdonald

Question 22

Startup v Macdonald

Answer 22

Delivered at 8:30 pm on a Saturday, buyer refused to accept delivery. Seller able to recover damages ( may have changed since SoG Act 1979 says delivery should be at ‘reasonable hour

Question 23

What is meant by time of performance?

Answer 23

Failure to perform in time would only give action to damages but not repudiation

Question 24

What three occasions is time considered ‘of the essence’

Answer 24

1. Parties made express stipulation that time is of the essence
2. Surrounding circumstances show time of performance critical (perishable goods)
3. Failed to perform, party can confirm unless performance completed within stated period, repudiation will occur