Summary
Performance
Total performance must be exact and complete:
- Exact, must match contractual obligations – Re Moore and Landauer.
- Complete, must be carried out to the end – Cutter v Powell.
Performance which is not exact and complete may be:
- Substantial performance, nearly complete, money must be paid less the
amount needed to correct minor defect – Hoenig v Isaacs. - Partial performance, less than substantial, must be accepted by the other
party, payment made on a quantum meruit – Sumpter v Hedge. - Time of performance – if important may be ‘of the essence’.
- Vicarious performance – performance by a third party. Allowed if not of
a personal nature – Edwards v Newland.
Agreement
Where both parties are in accord over the amendment or ending of a
contract. Really both parties have provided consideration to either change
the contract, or to end it and begin a new one.
Breach
Where one party fails to perform their contractual obligations. Also arises
where one party has lied in a contract.
- May be actual or anticipatory (yet to happen) – Hochster v De La Tour.
- The type of term is important to determine whether the breach is
repudiatory – Bettini v Guy, Poussard v Spiers and Pond. - Where the contract is breached, damages are payable by the injured party.
Frustration
Definition
Frustration arises when an event occurs, during the lifetime of a contract,
at the fault of neither party, which makes the contract impossible, illegal, or
radically different from that originally undertaken.
At one time obligations were absolute – Paradine v Jane.
A contract may be frustrated through:
222 Contract law