Flashcards
Exceptions to the General Rule
Cards in this deck (11)
- 1Exception 1 - De Minimis RuleThe courts are allowed to reject the strict general rules and allow for microscopic deviations to be ignored. However, this cannot be used when the contract expressly provides for precise performance.
The law will not deal with trifles
Reardon Smith Line Ltd v Yngvar Hansen-Tangen [1976] - 2Reardon Smith Line Ltd v Yngvar Hansen-Tangen [1976]Tanker described as Osaka 354, however became Oshima 004. Buyer tried to reject the ship as it was not entirely performed when ship was delivered, despite everything but name being exactly as specified.
The oil market had dropped, and buyer knew it was the wrong decition to buy the ship, so wanted to try and get out of it.
Held: buyer was not allowed to get out of the contract, the change of the name had no effect on the performance. - 3Schuler v Wickman [1974]Britian company would sell panel presses in Britain, and German company would make them. Condition of contract was they had to visit each named company once a week to get sales. Wickman failed to make all visits and Schuler terminated contract for breach of a condition.
Held: House of Lords only held it was a warranty despite the contract stating it was a condition. This meant the contract could not be ended. Simply labelling it as a condition did not make it a condition. - 4What is the statutory basis for the De Minimis Rule?S30 of the Sales of Goods Act 1979 - statutory basis for the right of rejection for failure to perform a contract for the sale of goods in strict compliance with its terms.
S30(2)(A) reasonableness requirement in the case of purchasers who do not deal as consumers.
S15(A) of the Sales of Goods Act 1979 - 5Exception 2 - Divisible ContractThis is where the contract is viewed as a mass of divisible contracts (various separate contracts). This allows each part to be enforced separately so if one of the obligations is not carried out, the party is still entitled to be remunerated for what has been done.
- 6Taylor v Laird [1856]Captain was to be paid £50 for each month he sailed down the Niger River to explore it. He abandoned the voyage.
Held: he was able to claim £50 for the months that he was on the boat. Had not completed the entire obligation, however he had completed stages of the obligation. - 7Exception 3 - Partial PerformanceThe strict rule will not always be enforced if part performance of the contract is better than rejecting the work completed. For example, a delivery of slightly fewer amounts of goods than is needed for the contract.
- 8What does S30 of the Sales of Goods Act 1979 state?says when there is a delivery of goods, if there is too much or too little, the buyer can accept the goods at the contract rate. So the price changes depending on how much you have been delivered.
- 9Sumpton v Hedges [1898]Claimant built two houses and a stable for £565, 2/3 of the way through, the builder ran out of money and gave up. Sued for the work that he had done, £333.
Held: the courts used Cutter v Powell. If there is partial performance, the buyer has to accept the performance if they are going to be paid for what they have done. - 10Exception 4 - Substantial PerformanceWhere one party has performed their obligations substantially in accordance with the terms of the contract, but there are some minor defects in performance. The party will be entitled to be remunerated for the work.
Will be paid minus the value of the work not carried out or incorrectly done, and the cost of putting everything right. - 11Hoengi v Isaacs [1952]Contract to decorate flat for £750, completed substantially most of the work, owner did not want to pay at all, but offered £400.
Held: the decorator was entitled to £750 as he had completed substantially all of the work.
Owner was offered £55 worth of damages.
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- Degree Contract Law (Discharge - Performance) Flashcards on Exceptions to the General Rule, created by James Dolton on 07/04/2017.
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- James Dolton
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