Performance

Question 1

The strict rule of performance of a contract

Answer 1

Exact performance - payment cannot be claimed unless performance is both complete, Cutter v Powell and exact, Re Moore and Landauer

Question 2

Exceptions to the strict rule

Answer 2

• A contract may be severable (or divisible) into different obligations, each of which may be seen as a different obligation, Taylor v Webb
• A contract may have been substantially performed, and so a claim may be made for the contract price minus an amount for fixing whatever work needs to be done, Hoenig v Isaacs. But substantial performance rule will not apply where there is no real benefit from the contract or the work is dangerous, Bolton v Mahadeva
• Where there is voluntary acceptance of partial performance - where one of the parties has performed the contract partly, but not completely, if the other party has shown willingness (i.e. agreed) to accept the part performance, the strict rule will not usually apply - Sumpter v Hedges.

Question 3

Rules on time of performance

Answer 3

Where a time has been made a condition of the contract, late performance will be a repudiatory breach. A party must give reasonable notice that the other has to perform within a certain time - Charles Rickards Ltd v Oppenheim

Question 4

Types of Breach

Answer 4

• Actual breach - where one of the parties fails to perform their obligations under a contract, that party can be sued for breach of contract - Pilbrow v Pearless De Rougemont (1999)
• Anticipatory breach - the other party can sue for breach straight away (i.e. treat the contract as repudiated at that point) -no need to wait until performance is due. Usually that one of the parties to the contract gives notice, in advance, that they will not be performing or completing the contract - Avery v Bowden