When is a contract discharged by performance?
When all contractual obligations are fully and exactly performed.
: Which case shows the strict rule of entire performance?
Cutter v Powell (1795).
What are the 5 Exceptions to the Rule of Performance?
- Tender of Performance — If one party offers to perform but is refused, obligations end (Startup v Macdonald)
- Severable Contract — Contract split into parts; each part can be performed and enforced separately (Taylor v Webb)
- Substantial Performance — Mostly completed contract may still require payment (Dakin v Lee)
- Acceptance of Part Performance — If part-performance is accepted, payment for that part can be enforced (Sumpter v Hedges)
- Delayed Performance — Delay usually breaches warranty (damages only), but if time is “of the essence” and conditions met, delay can lead to repudiation
5 exception in easy words
- Tender of Performance – You offered to do your part, but the other side said no.
- Severable Contracts – The contract can be divided into smaller parts that can be done and paid for separately.
- Substantial Performance – You did most of what you promised, even if a small part isn’t perfect.
- Acceptance of Part-Performance – The other side agreed to accept only part of what you did.
- Delayed Performance – You did your job late, but the other side was okay with it and gives you an extension
- Tried to Do It, But Refused — You offered to do your part, but the other person said no.
- Contract in Parts — The contract can be split into smaller jobs that can be done one by one.
- Almost Finished — You’ve done most of the work, so you can still get paid.
- Accepted Part Work — The other person agrees to pay for the part you did.
- Late Performance — Being late usually only means you pay damages, unless everyone agreed time really matters and you miss the deadline.
What happens if one party refuses performance after it is offered?case
The contract is discharged (Startup v Macdonald, 1843).
What is a severable contract?case
A contract where obligations can be divided and enforced separately (Taylor v Webb, 1937).
What is substantial performance?case
: When most obligations are done, payment can be enforced (Dakin v Lee, 1916).
What if part-performance is accepted?case
The party can get paid for what was actually done (Sumpter v Hedges, 1898
What happens if performance is delayed?
Usually, late performance is a breach of warranty, allowing damages but not ending the contract.
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When can delay lead to repudiation (ending the contract)?
If time is “of the essence”, meaning:
• Both parties agreed time was crucial, and
• The nature of the contract demands strict timing, or
• A time extension was given on condition that missing the new deadline leads to repudiation.
