Performance

Question 1

What is Performance?

Answer 1

Performance = carrying out contractual obligations as agreed
- When a contract is fully performed, it is discharged (comes to an end)

Question 2

What are the different ways a contract can be performed or dischaged?

Answer 2

• Strict Performance
• Divisible Contracts
• Substantial Performance
• Prevention of Performance
• Time is of the essence

Question 3

Explain Strict Performance

Answer 3

• All obligations must be performed completely and precisely
• Any Failure = No right to payment
• Very Strict Rule -> Can be harsh

Question 4

What case shows a sailor who dies before completing his journey

Answer 4

Cutter v Powell - Cutter agreed to work as a sailor on a ship voyage, only to be paid if he completed the entire journey, died shortly before the ship arrived. Widow was not entitled to any payment

Question 5

What case shows goods must exactly match the contracts desciption

Answer 5

Acros v E A Ronaasen - Wooden Staves supplied were slightly thicker than specified in the contract, Buyer entitled to reject the goods due to strict performance

Question 6

What are the Exceptions to Strict Performance

Answer 6

• The Contract is Severable (Divisble)
• Substantial Performance
• Performance attempted but prevented
• Voluntary Acceptance of Partial Performance

Question 7

Explain Performance Attempted but Prevented

Answer 7

• Occurs when one party is ready and willing to perform, but is prevented by the other party.
• The innocent party can claim payment on a quantum meruit basis (payment for work done).

Question 8

What case shows an author which before completion the publisher cancelled the series.

Answer 8

Planche v Colburn - An author was hired to write a book for a series. Before completion, the publisher cancelled the series. The author was entitled to payment for the work already done.

Question 9

Explain the Contract is Severable (Divisible)

Answer 9

• A contract is severable if it can be divided into seperate parts, each with its own performance and payment.
• If some parts are completed, payment can be clamed for those parts.

Question 10

What case shows a builder who carried out work in stages and only got paid for the stages he completed

Answer 10

Taylor v Webb - A builder agreed to carry out work in stages with payment due for each completed stage. Some stages were completed, but the contract was not fully finished. Builder entitled to the work that was completed.

Question 11

Explain Substantial Performance

Answer 11

• Applies where the contract has been mostly completed, with only minor defects or omissions.
• Contract is discharged but the performaning party is entitled to payment, deducting the cost of remedying the defects

Question 12

What case shows work was completed with defects.

Answer 12

Hoenig v Isaacs - A decorator was contracted to furnish and decorate a flat. Work was completed but there were defects in wardrobe and bookcase. Entitled to payment minus the cost of remedying the defects.

Question 13

What case shows that when the defects are serious and went to the root of the contract there was no substantial performance

Answer 13

Bolton v Mahadeva - Central heating system was installed but it failed to work properly. The installer was not entitled to any payment.

Question 14

Explain Voluntary Acceptance of Partial Performance

Answer 14

• Partial Performance gives no right to payment however, if the other party voluntarily accepts the partial performance, they must pay for the benefit received (quantum meruit)

Question 15

What case shows that partial performance was voluntarily accepted

Answer 15

Christy v Row - One party completed part of the work, and the other party chose to accept and use that work. Payment was allowed for the part performed.

Question 16

What case shows no real choice but to use the unfinished work

Answer 16

Sumpter v Hedges - A builder abandonded work halfway through. Landowner completed the building himself. Builder not entitled to payment as landowner had no real choice but to use the unfinished building.

Question 17

Explain Time is of the Essence

Answer 17

• Time will be a condition of the contract if it is expressly stated, or the contract is time-critical, or One party gives notice making time essential.

Question 18

What case shows that late completion when time is expressly of the essence

Answer 18

Union Eagle v Golden Achievement - Buyer was late completing a property purchase by minutes, contract could be terminated as deadlines are stricly enforced.