Discharge by Performance Flashcards
What is discharge?
Main obligations of contract have come to an end
What is the strict rule?
Perfromance must be complete and exact
If not fulfilled their exact obligations under agreement, other party doesn’t have to fulfil their obligations either
What happened in Cutter v Powell?
C tried to claim wages of husband who died before completing task
Entitled to nothing as didn’t complete work
What happened in Re Moore and Landauer?
C able to reject tins as they weren’t packaged in the quantities described, even though final amount was correct
What are the exceptions for discharge by performance?
Prevention of full performance
Acceptance of part performance
Divisible contracts
Substantial performance
What is prevention of full performance?
If one party prevents other from carrying out contract, innocent party can claim on a quantum merit basis
What is quantum merit?
Party can claim for work they did even though the obligation hasn’t been fulfilled as agreed
What happened in Planche v Colburn?
Publisher scrapped series, author able to receive quantum merit fee for prevention of full performance
What is acceptance of part performance?
Consent from both parties that’s free from pressure
If parties agree the one party doesn’t have to complete entire contract, contract must be paid on a quantum merit basis
Not consent if innocent party has no option but to take benefit for work done
Defaulting party allowed to be paid for work which they completed
What happened in Sumpter v Hedges?
Builder ran out of money, couldn’t complete job. Customer finished work, had no choice but to finish it, didn’t consent to part performance so builder not entitled to be paid
What are divisible contracts/severable contracts?
If contract has separate parts, it is divisible contract
Contract must be clearly divided into separate parts
What happened in Richie v Atkinson?
Cargo paid by the ton, only part of cargo was carried
Ship owner entitled to be paid fro the cargo he carried, did have to pay damages for breach of contract as didn’t carry entire cargo
What is substantial performance?
Party done substantially what is required under the contract, courts believe they have done enough
Must be paid appropriate amount
Won’t occur if contract is seen as single transaction
Substantial performance - Where do these often occur?
In large contracts where small elements of the contract aren’t performed
Substantial performance - how is the amount decided?
On a case by case basis
