Contract Law - Week 19a Lecture Discharge of Contracts (Performance) Discharge by Performance (conditions and entire obligations) . Once parties in a contract have done all that they are bound to do ('performed'), all primary obligations cease · What constitutes satisfactory performance? · Particularly important when performance by one party gives rise to the right to demand performance from the other party. · When does an action for the price or other agreed sum arise? General Rule To discharge a party's contractual obligations performance must generally be 'Precise and Exact · If have been asked to delivery blocks that aren't cracked, then must deliver these, if not there it was not precise and exact Parties Performance • Entire contract (or obligation) o Partial performance does not entitle the other party to any payment o Cutter v Powell (1785) " Man was to travel on a voyage from Jamaica to Liverpool " He was to be paid when he did it " Husband died on voyage " Wife came to claim for what he would have been paid because he had given lots of benefit " Held this couldn't occur because performance was not precise and exact o When there is partial performance you can't get compensation · Divisible contract (or obligation) o Apportionment Act 1870 o Bolton v Mahadeva (1972) " Supposed to be delivery central heating system D asked C to install the system " The system was found to be faulty D got a refund " C said they could fix it but would need a payment " Held it was not precise and exact as it was faulty and therefore C couldn't recover Taylor v Laird(1856) " C was employed to control a steamer " Negotiated to be paid £50 a month " Held it was fine for him to be paid for the months he had worked - the contract was devisable
3 exceptions • Devisable contract o If contract contains many devisable parts then compensation can be recovered for the devisable parts · Acceptance of partial performance · Substantial performance Recovery for incomplete performance in entire contract · Acceptance of partial performance - when performance has been done, but when it is done it is less than substantial o Courts say the innocent party has to choices to accept the performance or reject it " If accepts than has to pay the full sum " If rejects then doesn't have to pay anything o If a party has performed certain services to a certain extent o Sumpter v Hedges (1898) " C was contracted to build on D's land · C couldn't carry on building Innocent party had no choice but to go into land and do it himself " He used the C's material " C tried to get money for what he had done " Held he couldn't recover as there was no options available to the other party " But did have to pay for the building materials as they weren't his