Discharge - Performance

Question 1

What is the Strict Rule?

Answer 1

Performance must be complete and exact (Cutter v Powell)

Question 2

What’s the mnemonic?

Answer 2

TP, SC, SP, PP, DP
Theo Paphitis in Supreme Court for Stealing Prize Pickles and Peppers in Dragon’s Pitch

Question 3

Tender of Performance

Answer 3

• One party is willing and tries to perform their obligations but other party does not accept
• Innocent party can claim damages on a quantum meruit basis (Planche v Colburn)

Question 4

Severable Contracts

Answer 4

Where a contract can be seen as being separate parts, not completing one part does not breach the whole contract (Ritchie v Atkinson)

Question 5

Substantial Performance

Answer 5

• A party has done what was substantially required under the contract, must be payment for what has been done if the doctrine of substantial performance applies
  
  • Occurs in large contracts where little things are not performed exactly (Dakin + Co v Lee)
  • The courts use their discretion to reach fair + just decision through quantum meruit (Young v Thames Properties Ltd)
  • Difficult to establish, case-by-case basis, no strict percentage to indicate if work has been substantially completed (Bolton v Mahadeva)

Question 6

Accepting Part-Performance

Answer 6

• If one party has agreed the other party doesn’t need to complete the entire contract, the contract must be paid on a quantum merit basis (as much as it is worth)
  
  • Decision must be made without pressure (Sumpter v Hedges)

Question 7

Delayed Performance and Time

Answer 7

• The courts see time as a condition if: - (Union Eagle Ltd v Golden Achievement Ltd)
  
  1. The parties say in the contract the time it is performed is a critical part of performance
  2. Time of completion is critical, given the circumstances
  3. One party failed to perform on time and the other insisted on a new date for completion
• If ALL are present = breach of innominate term (Charles Rickards Ltd v Oppenheim)

Question 8

Prevention of Performance

Answer 8

One one party prevents the other from performance, innocent party can claim damages based on quantum meruit (Planche v Colburn)

Question 9

Vicarious Performance

Answer 9

• Where another person carries out the contract instead of the original party contracted with.
• Allowed in certain circumstances, if the contract is of a general nature
• (Edwards v Newland)