Discharge through performance Flashcards
what is the strict rule of discharge
performance must be complete and exact
in what case can the unjust nature of the strict rule be seen
Cutter v Powell
in what case was the contract discharged
Re Moore Co.
4 exceptions to strict rule
1) divisibility
2) substantial performance
3) acceptance of part performance
4) prevention of performance
explain exception of divisibility with a case
if a contract has separate parts then non-completion of one part is not a breach of the whole contract, as in Ritchie v Atkinson
explain the exception of substantial performance
if a party has completed ‘substantial’ amount of work under the contract then that party entitled to be payed for the work done
does substantial performance apply where contract can’t be broken down + case
no, as in Cutter v Powell
under substantial performance, party ‘at fault’ may be entitled to payment based on what
quantum merit (as much as it is worth)
what is ‘substantial’ as question of
fact, to be decided in each case
in what case had the contract been performed substantially, if not precisely
Dakin & Co v Lee
what case contrasts with Hoeing v Isaccs (contract substantially complete)
Bolton v Mahedeva - contract not completed substantially
explain acceptance of part performance
if one party agreed other party need not complete entire contract, strict rule will not apply and contract must be paid for on a quantum merit basis
in what case was the argument of part performance being accepted rejected and what was the outcome
Sumpter v Hedges - builder not entitled to be paid for the work he had done
explain prevention of performance with a case
if one party prevents the other from carrying out his obligations, the part trying to perform may have an action for damages as in Planche v Colburn
generally, failure to complete contract on time is treated as what
a breach of warranty (so damages but contract continues)
court will regard time as a condition in what circumstances (so contract repudiated and/or damages)
- parties expressly stated in contract that time is of the essence
- in the circumstances time for completion is critical
- 1 party already failed to perform + other insisted on a new date for completion as ‘time of the essence’
what act of CRA may apply under time of performance
s52 - trader must perform within a reasonable time
