9084 · 3.3.1
Performance flashcards
Revision flashcards for Cambridge 9084 Performance (syllabus 3.3.1). Flip, recall, then mark a real past-paper question.
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When does performance discharge a contract?
When a party performs their contractual obligations **exactly** and **completely**. This is the primary and most common method of discharge.
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What is the strict rule of performance from *Cutter v Powell (1795)*?
Performance of an 'entire contract' must be precise and exact. Failure to complete the entire obligation means the party who has partially performed cannot claim any payment.
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What is 'substantial performance'?
An equitable doctrine allowing a party who has performed the main part of their obligation, with only minor defects, to claim the contract price, minus the cost of rectifying those defects.
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What was the key distinction between *Hoenig v Isaacs* and *Bolton v Mahadeva*?
In *Hoenig*, defects were minor and the cost of cure was small relative to the contract price, so performance was substantial. In *Bolton*, the central heating was so defective it did not achieve its main purpose, and the cost of cure was a significant proportion of the price, so performance was not substantial.
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What is a 'divisible' or 'severable' contract?
A contract where obligations are separated into distinct parts, with payment due for each part as it is completed, rather than only upon completion of the whole contract (e.g. construction stage payments).
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What is the legal effect if 'time is of the essence' in a contract?
The time for performance is a condition of the contract. Any delay, however small, will be a repudiatory breach, allowing the innocent party to terminate the contract and claim damages.
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What does *Union Eagle v Golden Achievement* illustrate about time clauses?
It shows the strictness of 'time is of the essence' clauses. A delay of just 10 minutes in completing a property purchase was held to be a repudiatory breach, allowing the seller to terminate and keep the deposit.
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What is 'tender of performance'?
An offer by one party to perform their obligations. If the other party refuses to accept the performance, the tendering party is discharged from liability and can sue for breach of contract.
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What was the principle in *Re Moore & Co and Landauer & Co (1921)*?
It illustrates the strict rule of performance. A contract for tinned fruit packed in cases of 30 was breached because some were packed in 24s, even with the correct total quantity. The buyer could reject the whole shipment.
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What is a *quantum meruit* claim?
'As much as it is worth'. An equitable remedy allowing a party to claim a reasonable sum for work done, often used when a contract is breached by the other party preventing completion (*Planche v Colburn*).
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What was the principle in *Planche v Colburn (1831)*?
If one party prevents the other from completing performance of an entire contract, the innocent party can sue for damages or claim on a *quantum meruit* basis for the work already completed.
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What are the two key factors for determining if performance is 'substantial'?
1. The nature and extent of the defect (does it defeat the main purpose of the contract?). 2. The cost of rectification relative to the total contract price.