Performance and Breach

Question 1

What is the entire obligations rule?

Answer 1

Full performance

Question 2

Cutter v Powell

Answer 2

Entire obligations rule

Sailor to be paid for services til end of voyage on completion but died before and widow got nothing

Question 3

Sumpter v Hedges

Answer 3

Entire obligations rule
Ran out of money for building work, completed by D using C’s material. Could claim money back for material but not payment for work completed.

Question 4

The entire obligations rule is mitigated when?

Answer 4

• severable obligations
• substantial performance
• new contract
• Law reform (frustrated contracts) act

Question 5

Taylor v Laird

Answer 5

Severable obligations

Sailor paid per month so when left in 9th could claim for 8th’s pay

Question 6

Williams v Roffey Bros

Answer 6

Substantial performance

completed 8 flats substantially so must be paid minus sum for defects/incomplete

Question 7

Bolton v Mahadera

Answer 7

substantial performance
agreed to install heating/hot water
serious defects so pay nothing til defects cured

Question 8

Christy v Row

Answer 8

new contract
coal to hamburg, but stopped by war
at request of cosignee ship elsewhere, so pay for coal delivered

Question 9

Metcalfe v Britannia Ironworks

Answer 9

new contract
railways bars to be paid for after delivery
could not get there as route closed for winter, left elsewhere eventually delivered - no pay no new contract

Question 10

frustrated contracts act

Answer 10

non-performance due to frustration such as Cutter v Powell then court may award just sum for valuable benefit conferred

Question 11

right to terminate contract depends on nature of term breached

Answer 11

always condition
never warranty
if serious breach of innominate term

Question 12

when is a term a condition?

Answer 12

statutory (and judicial) classification
intention of parties
express clarification

Question 13

Arcos v E A Ronaasen & Son

Answer 13

statutory classification of condition
sale of goods act 1979 - has to conform to description
sale of wood staves - half inch thick
95% delivered were but still right to reject goods

Question 14

Bunge v Tradax

Answer 14

judicial classification
required 15 days notice of intention to ship goods so could select port
5 days too late
held condition

Question 15

Schuler v Wickman Machine

Answer 15

express clarification denied by courts as no loss
condition that visited 6 largest UK motor manufacturers every week, didn’t a couple of times out of 1,000s
contract terminated when failed to, denied by courts

Question 16

Hongkong Fir

Answer 16

innominate terms
ship charter must be ‘seaworthy in every way for ordinary cargo services’. Unseaworthy and repair cost loads
charter not entitled to terminate, not condition but innominate term

Question 17

Treitel and innominate terms

Answer 17

time stipulations are normally conditions
other terms innominate unless:
(a) exact performance of term is commercially vital
(b) evidence parties intended it to be condition

Question 18

White and Carter v McGregor

Answer 18

can affirm contract after anticipatory breach and demand performance
as long as:
not necessary for other party to do anything or accept anything
there is a legitimate interest