Performance Flashcards
(8 cards)
Discharge of contract
Relates to the circumstances in which the contract is brought to an end. Where a contract is discharged, each party is freed from their continuing obligations under the contact
Covers situations were
The parties have done exactly what they agreed to do and there is no need for the contract to carry on. The performance must be complete with no outstanding duties that the parties need to fulfil
Strict nature of rule
Illustrated in Cutter but as this can lead to harsh and unfair results, the courts have made some modifications or exceptions to the normal rule
Divisible contract
Allows a contract to be seen as separate parts and means that non-completion of one part is not a breach of a whole contract: Ritchie
Substantial performance
Means that if a party has completed a substantial part of what is required under the contract then they are entitled to be paid for that part. What amounts to substantial performance is decided on a case by case basis: Hoenig
Principle known as quantum meruit meaning the amount he deserves
Prevention of full performance
In the event of prevention of full performance, the innocent party can claim against the guilty party on a quantum meruit basis for the amount of contract they have performed: Planche
Acceptance of part performance
If one party agrees that the other party need not complete the entire contract the contract must be paid for an a quantum meruit basis, depending on how much of the contract has been performed: Sumpter
Time limits
Many contacts have a term inserted that places time limits on performance. Important when an item is needed for a certain time, such as birthday cake or wedding dress, or if the contract states time is of the essence.
Places a condition on performance of the contract and a party will be in breach i they do not meet the time limit set: Charles Richardson Ltd
