jj Flashcards
(108 cards)
Cutter v Powell (1795)?
Facts: Cutter agreed to be paid only if he completed a full sea voyage. He died before finishing.
2. Procedure: His wife, Mrs. Cutter, sued for payment for the work he had done.
Legal Issues: Did Cutter’s partial performance entitle his wife to some payment?
Outcome: The court ruled no payment because the contract required full completion.
General Rule: No. Where a contract explicitly requires full performance as a condition for payment, failure to complete means no entitlement to any remuneration.
What was the main question in Re Moore & Co. v Landauer & Co. [1921]?
Facts: Moore & Co. sold canned fruit in cases of 30, but some arrived in cases of 24.
2. Procedure: Landauer & Co. refused to accept the goods and sued.
3. Legal Issues: Does a small difference in contract terms allow rejection of goods?
4. Outcome: Exact terms must be followed, so Landauer could refuse the goods.
General Rule: Yes. Exact performance is required, and deviations from agreed terms, even if minor, can justify rejection of goods.
What is the ruling in Roberts v Havelock (1832) regarding partial performance?
Procedure: Roberts asked for payment for the repairs he had completed.
3. Legal Issues: Can payment be claimed for incomplete work?
4. Outcome: The court ruled Roberts could be paid for what he had finished.
General Rule: Yes. Where the contract does not require full completion before payment, the contractor may claim payment for work done.
In Sumpter v Hedges [1898], can a contractor claim payment for incomplete work under a lump sum contract?
Facts: Sumpter, a builder, ran out of money and abandoned work on Hedges’ house.
Procedure: Sumpter sued Hedges for payment for the unfinished work.
Legal Issues: Can a builder demand payment for incomplete work?
Outcome: Since Hedges had no choice but to finish the work himself, he didn’t have to pay.
This case emphasizes the strict requirement of full performance in lump sum contracts.
What principle was established in H. Dakin & Co. Ltd v. Lee [1916]?
Facts: Dakin & Co. built a house for Lee but made minor mistakes.
2. Procedure: Lee refused to pay, arguing the work was not perfect.
3. Legal Issues: If most of the contract is completed, should payment still be made?
4. Outcome: Since errors were small, Lee had to pay, but could deduct the cost of repairs.
General Rule: Yes. Substantial performance allows for payment, subject to deductions for defects.
What was the key issue in Bolton v Mahadeva [1972]?
Facts: Bolton installed a heating system for Mahadeva, but it didn’t work properly.
2. Procedure: Bolton sued for full payment.
3. Legal Issues: Can a contractor be paid for defective work?
4. Outcome: Bolton could not claim payment since the heating system was faulty.
General Rule: If defects are major, the work is not considered sufficiently performed to warrant payment.
In Planche v Colburn (1831), is a party entitled to payment if they are prevented from completing their performance by the other party?
- Facts: Planche was hired to write a book, but Colburn canceled the project.
- Procedure: Planche sued for the work he had already done.
- Legal Issues: If one party cancels a contract, does the other still get paid?
- Outcome: Planche should be paid for the work completed.
This case illustrates the rights of a party when performance is obstructed by another.
What does it mean to tender goods in Levey & Co v Goldberg [1922]?
- Facts: Planche was hired to write a book, but Colburn canceled the project.
- Procedure: Planche sued for the work he had already done.
- Legal Issues: If one party cancels a contract, does the other still get paid?
- Outcome: Planche should be paid for the work completed.
General Rule: Yes. If a seller properly tenders delivery, they have performed their obligation, and the buyer cannot refuse without justification.
Charles Rickards Ltd v Oppenheim [1950]?
Facts: Oppenheim ordered a car, which was delayed, buyer allowed delays (now
denoline.
2. Procedure: Rickards sued for payment as buyer cancel as car was arriving too late.
Legal Issues: If someone allows delays, can they later cancel the contruct?
Outcome: Since Oppenheim had accepted delays, he could not cancel at the last moment but could ask for damages.
This emphasizes the flexibility of contractual obligations under certain circumstances.
in Krell v Henry [1903]?
Facts: Henry rented a room from Krell to watch King Edward’s coronation. The coronation was canceled due to the King’s iliness.
2. Procedure: Krell sued Henry for non-payment of rent.
3. Legal Issues: Frustration? when the primary purpose (viewing the coronation) becomes impossible
4. Outcome: The court ruled the contract was frustrated because the sole purpose of the agreement (viewing the procession) could not be fulfilled. Henry was not required to pay.
This case highlights the significance of the underlying purpose of a contract.
In Herne Bay Steam Boat Co v Hutton [1903], does frustration apply if only part of a contract’s purpose is defeated?
Facts: Hutton hired a boat from Here Boat to watch the naval review and take a day cruise. The naval review was canceled, but the boat was still available for the cruise.
2. Procedure: Hutton refused to pay, claiming the contract was frustrated.
3. Legal Issues: Is a contract frustrated when only part of the purpose (naval review)
becomes impossible?
4. Outeome: There was no frustration because the boat was still available for a day cruise.
Hutton was required to pay.
What is anticipatory breach, as illustrated by Hochster v De La Tour (1853)?
1- Facts: Tour hired Hochster as a courier but canceled the contract before the start date.
2- Procedure: Hochster sued for damages before the contract’s performance was due.
3- Legal Issues: Can a party sue for breach before the contract’s start date?
4- Outcome: Yes, anticipatory breach applies. Hochster could claim damages immediately.
General Rule: Yes. Anticipatory breach allows an innocent party to claim damages as soon as the breach is communicated.
In The Hongkong Fir [1962], does any breach justify termination, or only serious breaches?
1- Facts: The Hongkong Fir ship was chartered to Kawasaki, but due to poor maintenance, it was delayed for repairs.
2- Procedure: Kawasaki terminated the contract, claiming a breach of a contract term.
3- Legal Issues: Does any breach allow termination?
4- Outcome: No, only a serious breach that deprives a party of the contract’s main benefit justifies termination.
What does the Law Reform (Frustrated Contracts) Act 1943 state regarding payments made before frustration?
Payments made before frustration can be recovered.
This act outlines the financial implications of contract frustration.
Johnson Agnew
Facts: Agnew agreed to sell a property to Johnson but later refused to complete the sale.
Johnson wanted specific performance to enforce the contract.
2. Precedure: Johnson obtained an order for specific performance, but Agnew still did not comply. Johnson then wanted damages.
3. Legal Issues: Can switch from specific performance to damages after a court order?
4. Outcome: House of Lords ruled that if specific performance is impossible/unfair, the
innocent party can claim damages. = specific performance not always the best remedy.
Can a contract be frustrated just because it becomes too expensive or difficult to perform, as seen in Edwinton v Tsavliris (The Sea Angel) [2007]?
Facts: Tsavliris rented the Edwinton’s boat for a rescue job, but the ship was held by the government after the contract ended.
2- Procedure: Edwinton claimed the contract was frustrated because he couldn’t get the ship back.
1- Legal Issues: Does a government delay cancel a contract?
2- Outcome: No Frustration. The delay was predictable.
Sky Petroleum Ltd v VIP Petroleum Ltd [1974]?
2.
Facts: VIP tried to cancel the Long-Term contract with Sky during a fuel shortage.
Procedure: Sky Petroleum sued for specific performance to enforce the supply of petrol.
Legal Issues: Can specific performance be ordered, even if damages arc usually the remedy?
Outcome: Injunction = forcing VIP Petroleum to continue supplying fuel. Because
petrol was scarce, damages would not have been an adequate remedy.
Specific performance is rarely granted for goods, but where damages are insufficient, it may be ordered.
Patel v Ali [1984]?
BMiaN - Severe Hardship
Ali v Patel
Facts: Patel agreed to sell his house to Ali but later refused to complete the sale.
Procedure: Ali sued for specific performance. The court - forcing the sale was fair?
Legal Issues: Can specific performance be denied due to hardship?
Outcome: The court refused specific performance because Patel’s wife had severe health issues, and forcing the sale would cause undue hardship.
What does ‘clean hands’ mean in the context of seeking specific performance, as seen in Shell UK Ltd v Lostock Garage Ltd [1976]?
Facts: Lostock had a contract to buy petrol from Shell. Shell sold petrol cheaper to nearby competitors, harming Lostock → It wanted Shell to supply fuel at lower prices.
2. Procedure: Lostock sued Shell for specific performance of fair pricing.
3. Legal Issues: Specific performance if one party has no obligations in return?
4. Outcome: No specific performance, stating that it could not force Shell to change its pricing strategy. Since Shell had no obligation to protect Lostock.
Can a court order specific performance requiring ongoing business operations, as seen in Coop Insurance Society v Argyll Stores Ltd [1998]?
Facts: Argyll Stores leased a supermarket from Co-op but closed it before the lease ended. Co-op wanted Argyll to keep the store open.
Procedure: Co-op sued for Argyll to continue operating the store.
3. Legal Issues: Can a court order a business to continue operating under a contract?
Can a court prevent a party from breaching an exclusivity agreement, as seen in Warner Bros Pictures Inc v Nelson [1937]?
Facts: Warner Bros signed a contract with actress Bette Davis, preventing her from working for competitors. She later tried to act for another studio.
Procedure: Warner Bros sued to stop her from breaching the contract.
Legal Issues: Can stop someone from working elsewhere if they break a contract?
Outcome: Yes, prohibitory injunction, preventing Davis from acting for other studios but not forcing her to work for Warner Bros.
Can an injunction prevent a party from breaching exclusivity terms, as seen in Araci v Fallon [2011]?
Facts: Fallon agreed to ride Araci’s horse in a race but panned ride a rival horse instead.
Procedure: Araci wanted an injunction to stop Fallon from racing for the competitor.
Legal Issues: Injunction stop someone from breaching a contract before breach happens?
4. Outcome: Yes, prohibitory injunction, preventing Fallon from riding the rival horse, as damages would not be enough.
Can a mandatory injunction compel a party to reverse wrongful eviction, as seen in Luganda v Service Hotels [1969]?
Facts: Luganda was illegally ejected from a hotel property by Hotels.
2. Procedure: Luganda wanted a mandatory injunction.
3. Legal Issues: Can the court order a party to reverse an unlawful action?
4. Orcome: Yes, mandatory injunction, forcing Hotels to restore Luganda’s property.
Should damages cover repair costs or only the diminution in value, as seen in Watts v Morrow [1991]?
- Facts: Watts bought a house based on a report but later found serious defects.
Procedure: Watts sued for the cost of repairs and distress caused by the defects.
Legal Issues: Can damages cover both repair costs (cost of cure) and emotional distress?
Outcome: No cost of cure; damages were limited to the difference in value (+ compensation for distress be special cases.)