Sheet1Case Summaryprepared by NigelDetails (prepared by Ann Chan)Discharge by Performance and by BreachTopicCaseKey PrincipleRefDischarge by performanceBolton v. Mahadeva 1972A contract is only discharged by exact performanceNC149Discharge by performanceHoenig v. Isaacs 1952Where there has been substantial but not exact performance the other party must still perform their side of the agreementNC150Discharge by performanceSumpter v. Hedges 1898Where the promisee has the option to and does not accept partial performance, they are bound to pay a reasonable price for what they received.NC150Discharge by breachThe Mihalis Angelos 1970Breach of a condition give the injured party the right to treat the contract as repudiatedNC151Discharge by breachBunge Corp v. Tradax Export 1981Whether a term is a condition or not depends upon the intention of the partiesNC152Discharge by breachL. Schuler A.G. v. Wickman Machine Tool Sales Ltd 1974Usint the word "condition" within a particular term of a contract does not automatically make that term a "condition" in the legal sense.NC152Discharge by breachRe Moore & Co. and Landauer & Co. 1921In a contract for the sale of goods if some of the goods do not correspond with the contract description then the buyer usually has the right to reject all the goodsNC153Discharge by breachReardon Smith Line v. Hansen-Tangen 1976If the subject-matter of the contract fails to correspond with its description then the buyer should only have the right to reject if there is also a substantial failure of performanceNC154Discharge by breachPoussard v. Spiers 1876Where a breach of a term amounts to a substantial failure of performance, the injured party has the right to treat the contract as repudiatedNC154Discharge by breachBettini v. Gye 1876Where a breach does not amount to a substantial failure of performance, the injured pary does not usually have the right to treat the contract as dischargedNC155Discharge by breachHong Kong Fir Shipping Co. Ltd v. Kawasaki Kisen Kaisha Ltd 1962Where a breach of an innominate term deprives an injured party of substantially the whole benefit of the contract that party is entitled to treat the contract as repudiatedNC155Discharge by breachCehave NV v. Bremer, The Hansa Nord 1975The innominate term approach can be used where there is a contract for the sale of goodsNC156Discharge by breachRice v. Great Yarmouth Borough Council 2000The innominate term approach is applicable to a long-term contract for the provision of servicesNC157Discharge by breachWhite & Carter (Councils) Ltd v. McGregor 1962The right of an injured party to affirm the contract after a repudiatory breach is not absoluteNC157Discharge by breachClea Shipping Corp v. Bulk Oil International Ltd 1984Where a person has no legitimate interest, financial or otherwise, in performing the contract rather than claiming damages, he ought not to be allowed to affirm itNC158Anticipatory BreachHochster v. De La Tour 1853Where there is an anticipatory breach the injured party can accept the breach and immediately claim damagesNC158Anticipatory BreachVitol SA v. Norelf Ltd 1996An injured party may accept a repudiatory breach simply by failing to perform their own contractual obligationsNC159Anticipatory BreachAvery v. Bowden 1856If the injured party does not accept the anticipatory breach then damages will be assessed at the date due for performanceNC160Anticipatory BreachFercometal SARL v. Mediterranean Shipping Co. SA, The Simona 1988An injured party who does not accept an anticipatory breach must continue to perform their own obligationsNC160

Details (prepared by Ann Chan)

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