Discharge by Performance

Cards (14)

  • What is the complete performance rule?
    The contract will not be discharged unless performance is complete and exact
  • What case is used for the complete performance rule and what happened?
    Cutter v Powell. Sailor died during voyage, no wages were payable to widow
  • What are the 5 exceptions to the complete performance rule?
    1. Divisible Contracts
    2. Substantial contracts
    3. Prevention of performance
    4. Delayed performance
    5. Acceptance of part-performance
  • What is a divisible contract?
    A contract that can be divided into different obligations.
  • What case can be used for divisible contracts and what happened?
    Ritchie v Atkinson. Carried only part of the cargo, they were paid per ton
  • What will the contract be treated as if it is deemed divisible?
    it will be treated as discharged
  • Explain Substantial Performance
    If the contract has been substantially performed, a claim may be made for the contract price minus an amount for fixing whatever work needs to be done
  • What two cases are there for substantial performance?
    Hoenig v Isaacs
    Bolton v Mahadeva
  • What happened in Hoeneg v Isaacs?
    Defects with bookcase costing 56, during refurbishment of flat, compared to overall contract price of 400.
  • What is the point of law in Bolton v Mahadeva?
    No substantial performance if amount to be done removes all benefit from contract or causes further damage
  • What is Prevention of Performance?
    Where a party has offered to perform a contract within the time specified for performance, this will discharge their contractual obligations and allow them to claim contract price from the other side, even if performance was declined.
  • What are the two cases for Tender of Performance?
    Planche v Colburn
    Startup v McDonald
  • What is Delayed performance?
    Where time of performance has been made a condition of the contract, late performance will be a repudiatory breach, entitling the claimant to treat the contract as at an end.
  • What are the two cases for delayed performance?
    union eagle v golden achievement
    Charles Rickards v Oppenheim