Discharge by Performance Discharge by performance To discharge a party's contractual obligations performance must generally be "precise and exact" Re Moore & Co and Landauer & Co (1921) Arcos Ltd v EA Ronaasen & Sons (1933) Union Eagle Ltd v Golden Achievement Ltd (1997) Reardon Smith Line Ltd v Hansen-Tangen (1976) Sale of Goods Act 1979, s15A Tender of Performance Being ready to perform may = performance s 27 Sale of Goods Act 1979: -the seller must be ready and willing to give possession of the goods to the buyer in exchange for the price and the buyer must be ready and willing to pay the price in exchange for the possession of the goods. Definition of tender - Startup v Macdonald (1843) Tender of money ("legal tender") Coinage Act 1971, s 2 Partial performance Entire contract (or obligation) Partial performance does not entitle the other party to any payment Cutter v Powell (1785) Divisible contract (or obligation) Apportionment Act 1870 Bolton v Mahadeva (1972) Recovery for incomplete performance in entire contract . Non-completion due to the act of the other party -Planche v Colburn (1831) · Acceptance of partial performance - Christy v Row (1808) - Sumpter v Hedges (1898) · Substantial performance Principle of "Substantial Performance" Boone v Eyre (1779) Dakin v Lee (1916) Hoenig v Isaacs (1952) Bolton v Mahadeva (1972) Williams v Roffey (1991) Young v Thames Properties (1999)
Time for performance Time not usually "of the essence" - eg s. 10(1), SGA 1979 re payment of price for goods May depend on terms of contract see, eg, Halsbury's Laws of England, Vol 9, para 481 - United Scientific Holdings Ltd v Burnley Borough Council (1978) Bunge v Tradax (1981) Time not "of essence" - notice can make it so · Charles Rickards v Oppenheim (1950) · Behzadi v Shaftesbury Hotels Ltd (1992) Next week: • Illegality b) Agreements contrary to public policy