Discharge of Contract By Performance Flashcards
What is discharge of contract?
The contract ends and parties are no longer legally binded by its terms
What are the requirements for a discharge by performance?
Performance wasnt complete and exact
What was held in Cutter v Powell?
No wages could be recovered as Cutter’s performance hadn’t been complete and exact
What is a divisible contract?
If each obligation is separately enforceable, non-completion doesn’t constitute a breach
What was held in Ritchie v Atkinson?
He only carried some of the cargo agreed:
- so was only entitled to payment for the cargo he had carried
- He was liable for damages in not carrying the whole cargo
What is a substantial performance?
A party has done substantially what was required of them
What was held in Daken v Lee?
Some aspects were poorly performed so the contract was performed substantially but not precisely
What is meant by the prevention of the full performance?
One party prevents the other from fulfilling the contract in its entirety so the innocent party can claim on a ‘quantum merit’ basis
What is meant by ‘quantum merit’?
‘As much as it is worth’
What is meant by acceptance of part performance?
There must be a specific acknowledgement and agreement without undue pressure
What was held in Sumpter v Hedges?
There was no entitlement to be paid as the customer had no choice but to accept part performance
When may time be a warranty rather Than a condition?
- Expressly stated time is of the essence
- Time for completion is critical
- Failed to complete on time and new date is set which makes time of the essence
