Contract Law: Partial Performance and Acceptance

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What is the legal basis for a party to claim payment for partial performance?

Quantum meruit basis (correct)

Lump sum basis

Divisible contract basis

Frustration basis

In Sumpter v. Hedges 1889, why was the plaintiff unable to recover anything for his partial performance?

The plaintiff's workmanship was of bad quality

The defendant willingly accepted the partial performance

The defendant had no alternative but to complete the work himself (correct)

The plaintiff abandoned the contract due to financial difficulties

Under what circumstances does frustration occur in a contract?

When an event occurs that makes the performance of the contract impossible or futile (correct)

When one party is dissatisfied with the quality of workmanship

When a party fails to deliver all the agreed installments

When a contract becomes more profitable than originally contemplated

In Taylor v. Caldwell 1863, what led to the frustration of the contract?

The destruction of the subject matter of the contract (B) Signup and view all the answers

What type of contract is regarded as divisible?

Installment contract (B) Signup and view all the answers

When does frustration occur in a contract involving personal services?

When there is death, incapacity, or serious illness affecting a key party involved (C) Signup and view all the answers

What law governs the discharge of a contract by frustration in Singapore?

Frustrated Contracts Act (Cap 115) (C) Signup and view all the answers

What is the general rule regarding performance of a contract?

Complete and precise performance is necessary for the contract to be discharged. (C) Signup and view all the answers

What did the court decide in the case of Cutter v. Powell 1795?

The defendant was not held liable as the husband did not complete the whole voyage. (B) Signup and view all the answers

What defines substantial performance of a contract according to the exceptions to the general rule?

Performance where the difference between contract price and rectification costs is not too great. (A) Signup and view all the answers

What happens if incomplete performance of a contract is caused by the other party who prevented full performance?

The prevented party is only entitled to claim for the work already done on a quantum meruit basis. (A) Signup and view all the answers

In Hoenig v. Isaacs 1952, why did Hoenig pay only £400 instead of the contract price of £750?

Hoenig claimed poor workmanship and paid based on rectification costs. (B) Signup and view all the answers

What did the court decide in Planche v. Colburn 1831?

Planche was entitled to half the contract sum he would have been paid if allowed to complete the work. (B) Signup and view all the answers

How does substantial performance exception reduce the harshness of the general rule?

It requires payment despite incomplete or defective performance. (A) Signup and view all the answers

What is the effect of frustration on a contract at common law?

The contract becomes void, but parties must still perform any obligations due before the frustration occurred. (C) Signup and view all the answers

In which case was the frustrated party able to recover expenses incurred in performing the contract before it was frustrated?

Metropolitan Board v. Dick.Kerr Ltd 1918 (B) Signup and view all the answers

Under the Frustrated Contracts Act, what happens to any money payable at the time of frustration?

It ceases to be payable. (D) Signup and view all the answers

In which scenario would a contract not be frustrated according to the text?

Shortages of labor and materials leading to increased cost and time to complete construction. (C) Signup and view all the answers

Which case illustrates the common law rule of frustration operating unfairly against a party?

Chandler v.Webster 1904 (A) Signup and view all the answers

What does the FRUSTRATED CONTRACTS ACT (CAP 115) seek to achieve?

To spread the loss or benefit as reasonably and fairly as possible between the parties. (A) Signup and view all the answers

What happens when each party to a contract carries out their part of the promise?

The contract is discharged and both parties are released from their obligations (C) Signup and view all the answers

In a sale of goods contract, what happens when the seller receives the price from the buyer without any complaint about the goods?

The seller has performed his obligation and the buyer has paid, so the contract is discharged (B) Signup and view all the answers

What happens if either party fails to carry out their obligations in a contract?

The defaulting party will be in breach of contract and liable to compensate the innocent party (B) Signup and view all the answers

What is the significance of a delivery date mentioned in a sale of goods contract?

The delivery date must be strictly complied with as it forms part of the description of the goods (A) Signup and view all the answers

If a seller fails to deliver goods by the specified delivery date, what is the legal consequence?

The seller will be in breach of contract and liable for compensation (A) Signup and view all the answers

When are the obligations created by a contract discharged?

When each party has carried out their part of the promise (A) Signup and view all the answers

What happens when one party fails to carry out their obligations in a contract?