Performance

Question 1

1. Performance can discharge (end) a contract…

Answer 1

Performance can discharge (end) a contract. The strict rule is that performance must be complete and exact (Cutter v Powell, Re Moore and Landauer).

However, there are exceptions where the strict rules do not apply.

Question 2

2. For a Divisible (Severable) Contract, where the contract has separate obligations…

Answer 2

[IF RELEVENT]

For a Divisible (Severable) Contract, where the contract has separate obligations, non-completion of one part by a party is not a breach of the whole contract (Ritchie v Atkinson, Taylor v Webb) and he is entitled to payment for the work he has done, unless the non-completion removes all the benefit from the contract ie ruins the contract.

• Here

Question 3

3. If a party has carried out a substantial part of what was required under the contract…

Answer 3

[IF RELEVENT]

If a Party has carried out a Substantial Part of what was required under the contract, he is entitled to payment for that part, unless the part performance removes all the benefit from the contract ie ruins the contract. ‘Substantial’ is considered on a case to case basis (Hoeing v Isaacs, Bolton v Mahadeva).

• Here

Question 4

4. If a Party accepts Part Performance of a contract, through a specific acknowledgement…

Answer 4

[IF RELEVENT]

If a Party accepts Part Performance of a contract, through a specific acknowledgement, the other party is entitled to payment of what he has performed (Sumpter v Hedges).

• Here

Question 5

5. Where a party prevents the other from carrying out performance

Answer 5

[IF RELEVENT]

Where a party prevents the other from carrying out performance, the innocent party is entitled to payment for any wasted work (Planche v Colburn).

• Here

Question 6

6. There are specific rules…

If a time or date is specified within the contract…

Parties may also be able to give “reasonable notice”…

Answer 6

[IF RELEVANT]

There are specific rules on time of performance (Union Eagle v Golden Achievement).

If a time or date is specified within the contract, it will be a condition of the contract (the remedy for which is repudiation and/or damages).

Where no date or time is specified, it must be completed within a reasonable time, as in Astea v Time Ltd.

Parties may also be able to give “reasonable notice” of the requested completion date after the contract has been created, as in Charles Rickard v Oppenheim. Otherwise late performance is breach of an innominate term and repudiation depends on the severity of consequences.

• Here [eg. D failed to meet the deadline, which was a condition of the contract, so D is in breach of contract and C will be entitled to end the contract and be awarded damages OR D set the deadline of two weeks’ time, after having already waited 5 weeks. D will not be liable for breach of contract when he refuses to accept delivery].