What are the four ways in which a contract can be discharged, as mentioned in the source material?
A contract can be discharged by:
1. expiry
2. performance
3. agreement
4. breach
5. or frustration.
How is a contract discharged by expiry?
The contract is completed according to its own terms, often by a stipulated date or upon the occurrence of a specified event.
Under the ‘entire obligations rule’, when is a contractual obligation discharged?
A contractual obligation is discharged only by a complete performance of that obligation.
What principle dictates that a promisor who only performs part of their obligation is not discharged and generally cannot claim partial payment?
The entire obligations rule.
What is the key case associated with the entire obligations rule?
Cutter v Powell (1796).
In Cutter v Powell, what was the specific condition for the sailor, Cutter, to receive payment of 30 guineas?
Payment was conditional on him proceeding, continuing, and doing his duty for the entire voyage from Jamaica to Liverpool.
What was the court’s decision in Cutter v Powell when the sailor died before completing the voyage?
The action failed; because the contract was ‘entire’ and had not been completely performed, his widow was entitled to nothing.
Why were exceptions to the entire obligations rule developed?
To mitigate the harsh effects of the rule, as seen in cases like Cutter v Powell.
Name the four exceptions to the entire obligations rule.
- Acceptance of partial performance
- substantial performance
- divisible obligations
- and wrongful prevention of performance.
Under what circumstance can a party in default claim payment for partial performance?
If the innocent party voluntarily accepts the partial performance.
When an innocent party accepts partial performance, the party in default is entitled to payment on a _____ basis.
quantum meruit
Term: Quantum Meruit
A remedy meaning ‘as much as is deserved’, allowing a claimant to claim a reasonable sum to prevent the defendant’s unjust enrichment.
How does a court assess the value of a quantum meruit award?
It is assessed on an objective basis, for example by using the usual market price for the goods or services.
In Sumpter v Hedges, why did the court find that the landowner had not voluntarily accepted the partial performance of the building work?
Because the work was on his land, he had no choice but to complete it and was in possession of something he could not fail to keep.
Although the builder in Sumpter v Hedges was not paid for the partially completed houses, what was he compensated for and why?
He was compensated for the value of building materials left on site, as the landowner had a choice whether or not to use them.
What is the exception to the entire obligations rule where performance is almost complete, but with minor defects?
Substantial performance.
If a contract is substantially performed, what is the performing party entitled to receive?
The contract price, subject to a deduction to reflect the cost of remedying the defect.
What question does a court consider to determine if performance was ‘substantial’?
Whether the defect goes ‘to the root of the contract’.
Which case is an example of a contract being deemed substantially performed despite defects?
Hoenig v Isaacs [1952].
In Hoenig v Isaacs, why was the decorator entitled to the full contract price minus the cost of repairs?
The court held the contract was substantially performed as the defects (e.g., faulty wardrobe door) did not go to the root of the contract.
Which case contrasts with Hoenig v Isaacs, where the court found a lack of substantial performance?
Bolton v Mahadeva [1972].
In Bolton v Mahadeva, why was the installation of the central heating system not considered substantial performance?
The system did not function adequately for its main purpose (heating) and produced harmful fumes, meaning the defect went to the root of the contract.
What would the claimant in Bolton v Mahadeva have needed to do to become justified in claiming the contract price?
He would have needed to offer to remedy the defects and then successfully do so.
What are ‘divisible obligations’ in a contract?
Contractual obligations that are intended to be divided into parts, allowing the performing party to be paid for each part that is completed.
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Introduction to offer and acceptance4
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Requirements for a valid offer6
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Invitations to treat25
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Termination of an offer26
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Three rules in relation to acceptance7
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Acceptance must be communicated17
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Certainty5
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Week Two0
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Introduction to consideration4
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Key principles of consideration21
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Variation of contract1
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Existing obligations29
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Promissory estoppel18
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Intention to create legal relations17
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Capacity19
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Week 30
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Duress17
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Economic Duress27
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Economic duress and consideration6
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Undue Influence25
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Undue influence and third parties18
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Week 40
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Express terms contrasted with representations32
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Express terms32
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Implied terms26
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Sale of Goods Act 197935
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Supply of Goods and Services Act 198225
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Consumer Rights Act 2015 (implied terms)42
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Conditions and warranties30
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week 50
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Construction of exemption clauses30
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Unfair Contract Terms Act 197733
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consumer rights act 2015 (exemption clauses and other unfair terms)28
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week 60
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elements of an actionable misrepresentation38
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statements of fact34
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categories24
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remedies for misrepresentation40
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week 70
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mistake29
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unilateral mistake of identity33
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common law methods of circumventing the doctrine of privity25
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contracts (rights of third parties) act 199935
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week 80
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discharge by performance31
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discharge by disagreement22
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discharge by breach30
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discharge by frustration40
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consequences of frustration20
