Performance- discharge of contract Flashcards
What are the three options to discharge a contract?
-acceptance (no more discussion needed).
-Performance
-Breach of contract (actual and anticipatory)
-Frustration
What is meant by discharge by performace?
-if both parties have complied fully with all of the terms of the contract, their obligations are at an end.
-ended contract via discharge.
What are the two rules to ensure discharge by performance?
- Must be exact
- Must be complete
Which case goes with exact performance?
Re Moore
Re Moore & landauer?
-Tinned fruit- wrong size box
-performance not exact = no perf
-entitled to reject.
Which case goes with complete performance?
Cutter v Powell
Cutter V Powell?
-tried to claim proportions of husbands wage from ship when died
-contract was to do whole journey- no money.
How has the strict rule of exact and complete been modified?
- Substanital performance
- Partial performance
- Late performance.
What is meant by substantial performance?
-Has a party done substantially what was required under the contract?
Who decides what is meant by substantial?
-The court, on the facts of the case.
-most of the work must be complete.
When does substantial performance tend to happen?
-large contracts where little things have not been performed correctly.
Which cases come under substantial performance?
- Hoenig V Isaacs
- Bolton V Mahadeva
- Young V Thames property
Hoenig V Issacs?
-quoted £750 to decorate room
-£55 of minor defects
-substantially completed on a financial basis.
Bolton V Mahadeva?
-heating system for £560
-defective +fumes+ £170 repair
-not substantially completed on a financial basis.
What is meant by a Quantum Meruit basis?
substantial performance.
-courts use their discression to make fair decision
-as much as it is worth.
Young V Thames Properties?
-didn’t resurface car park to specified depth
-minor defecr- contractor entitled to payment for work- money saved by not resurfacing to right depth.
What is meant by partial performance?
-if parties agree to end contract before it is completed
-+work done is less than substantial
-agreement to do less work for reduced fee.
BOTH PARTIES MUST AGREE.
How will the payment be calculated for partial performance?
-according to quantum meruit
-‘as much as deserved’
Which case goes with partial peformance?
Sumpter V Hedges
Sumpter V Hedges
-part built house+stables
-claimed for 1/2 said accepted part-performance
-not entitled- not accepted.
How will the payment be calculated for partial performance?
-according to quantum meruit
-‘as much as deserved’
What is meant by late performance?
-based on delays that constitute a substantial failure to perform
-where time is of ‘the essence’
Examples of where time may be considered ‘of the essence’?
E.g. if you order a birthday cake, it should arrive on the day of the birthday.
Which case goes with late performance?
Charles V Rickards V Oppenheim
