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Essential points 157

Rectification

Rectification is an equitable remedy which arises when a contract which has been con-
cluded orally is then written down. If what is written down does not accurately reflect
what the parties agreed orally, the court can allow the written document to be rectified
(put right).

Quantum meruit(as much as he has earned)

A party who receives a quantum meruit payment is paid the amount deserved for work
done. Such a right can arise in four circumstances:

(i) If the other contracting party prevented further performance of the contract.

(ii) If the other contracting party voluntarily accepted partial performance of the contract.

(iii) If the contract did not provide how much should be paid.

(iv) If work was done and accepted under a void contract.

Time limits on remedies

The Limitation Act 1980 makes the following rules about the time span within which
a remedy for breach of contract must be claimed.
A simple contract (one not made by a deed) must be sued upon within six years of the
right to sue arising. The right to sue will arise when the contract is breached. A claim for
personal injuries must be made within three years of the right to sue arising. Where a con-
tract is made by a deed, a claim must be made within 12 years of the right to sue arising.
Time does not run against minors until they reach the age of 18. Time does not run against
a victim of a fraud until the fraud is, or should have been, discovered. Where the claim is
for a debt, any written acknowledgement of the debt’s existence will cause the time period
to begin again.
The time limits set out in the Limitation Act 1980 do not apply to equitable remedies.
However, an equitable remedy will not be granted to a party who has delayed unreason-
ably in asking for the remedy.

Essential points

n Contractual liability can become discharged in four ways: by performance, by agree-
ment, by frustration or by breach.

n The general rule is that if one party fails to fully perform the contract the other party
need not perform the contract at all.

n Contractual obligations can be discharged by agreement, as long as both parties give
some consideration to the other in return for being released from their contractual
obligations.

n A contract may become frustrated if it becomes impossible to perform, illegal to
perform or radically different from what the parties contemplated when they made
the contract.