Discharge by performance Flashcards
(16 cards)
What is the usual way for contracts to be discharged ?
by performance so both parties have completed their obligations
What is the strict rule of discharge by performance and cases ?
performance must b complete (Cutter V Powell) & exact (Re Moore V Landauer)
What are some of the exceptions to the rule of discharge ?
prevention of performance
acceptance of part-performance
divisible contracts
substantial performance
What is prevention of performance?
when one party prevents the other from carrying out performance
What did Planche V Colburn say about prevention of performance?
can be paid on QM basis for work
What is acceptance of part-performance (what 2 things does it require) ?
1) specifically acknowledge part P is acceptable
2) no unfair pressure/duress to accept part P = genuine choice
How does Sumpter V Hedges show a part-performance that wasn’t accepted?
builder ran out of money half way through so customer HAD to finish the job themselves
What is a divisible contract ?
contract in clearly separate parts
what does Ritchie V Atkinson say about divisible contracts ?
the non-completion of one part is NOT a breach of the whole contract
What is substantial performance ?
when D has done most of the work or actually done all the work but some isn’t satisfact.
What does Dakin V Lee say about substantial performance ?
get payed on QM basis for what already done
There is no definition of substantial so how does Hoenig V Issacs show a substantial performance ?
decorator finish contract worth £750 w £55 of repairs left outstanding & payed on QM basis
What case shows when there is no partial performance ?
Bolton V Mahadeva- 69% not substantial
How does time delay affect a contract (& case) ?
doesn’t unless ‘time of the essence’
union eagle ltd. V golden achievement
What does Charles Rickards v Oppenheim say about time of the essence ?
if it’s obvious time of performance is critical or it is made of the essence then the time term is a condition
What are the remedies for discharge by performance ?
QM (court order for $ for work done)
specific performance (finish job)
damages (£, comp., right to repudiate)