Discharge of a contract: Performance

Question 1

When is a contract discharged through performance?

Answer 1

Until all of the obligations are performed exactly to the contract’s desire. Cutter v Powell

Question 2

What are severable contracts?

Answer 2

Contracts where obligations are divisible, where each separate obligation can be singularly enforceable - Taylor v Webb

Question 3

Can part-performance be acceptable?

Answer 3

Yes, and payment for what is performed can be enforceable.

Question 4

What can be enforced if substantial performance is achieved?

Answer 4

It may be possible to enforce the appropriate payment - Daken v Lee

Question 5

When can acceptance of part-performance arise?

Answer 5

When both parties agree and it is genuine.

Question 6

What happens if one party has performed but was refused by the other?

Answer 6

The parties’ obligations are discharged - Startup v Macdonald

Question 7

What happens if they fail to perform on time?

Answer 7

Usually a breach of warranty, which allows for damages but not discharge of contract.

Question 8

What happens if they fail to perform on time and time is of the essence? 1

Answer 8

Repudiation may follow if: both parties made this clear

Question 9

What happens if they fail to perform on time and time is of the essence? 2

Answer 9

Subject matter dictates such

Question 10

What happens if they fail to perform on time and time is of the essence? 3

Answer 10

A time extension is given on the proviso that repudiation will occur if deadline is not met.