Performance Flashcards
What can discharge (end) a contract?
Performance can discharge (end) a contract. The strict rule is that performance must be complete and exact.
(Cutter v Powell, Re Moore and Landauer)
What is an exception to the strict rule of performance?
For a divisible (severable) contract, non-completion of one part by a party is not a breach of the whole contract.
(Ritchie v Atkinson, Taylor v Webb)
What happens if non-completion removes all benefit from the contract?
If non-completion removes all the benefit from the contract, the party is not entitled to payment for the work done.
What is an example of a divisible contract?
In a contract where C is to be paid for each chapter of a book he completes, non-completion of chapters removes all benefit from the contract.
Example: C is not entitled to payment as the whole book is needed.
What is the rule regarding substantial part performance?
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 it removes all the benefit from the contract.
(Hoeing v Isaacs, Bolton v Mahadeva)
What happens if part performance removes all benefit from the contract?
If part performance removes all the benefit from the contract, the party is not entitled to payment.
What occurs if a party accepts part performance?
If a party accepts part performance through specific acknowledgement, the other party is entitled to payment for what he has performed.
(Sumpter v Hedges, Roberts v Havelock)
What is an example of accepting part performance?
If D specifically agreed to accept part performance, C will be entitled to reasonable payment for the work that he did.
Example: D accepted part performance from C.
What happens if one party prevents the other from performing?
The innocent party is entitled to payment for any wasted work if prevented from carrying out performance.
(Planche v Colburn)
What is an example of being prevented from performance?
If D turned C away when he came to complete the work, C will be entitled to payment for the work that he did.
Example: D prevented C from completing the work.
What are the rules on time of performance?
There are specific rules on time of performance 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
(Union Eagle v Golden Achievement, Macdonald v Startup)
What happens when no date or time is specified in a contract?
It must be completed within a reasonable time, making it an innominate term.
Example case: Astea v Time Ltd.
Can parties give notice of the requested completion date after the contract is created?
Yes, parties may give ‘reasonable notice’ of the requested completion date.
Example case: Charles Rickard v Oppenheim.
What is the consequence of late performance in relation to an innominate term?
Late performance is a breach of an innominate term, and repudiation depends on the severity of consequences.
