Exceptions to the entire performance rule

Overview

Four main exceptions to the entire performance rule and doctrine of substantial performance.

What you need to know

Answer each one before you reveal it.

Questions from this subtopic

Each one with the model answer underneath.

1. 1

   Name the four main exceptions to the entire performance rule.

   Model answer

   The exceptions are substantial performance, acceptance of part performance, prevention of performance, and a divisible contract. Each allows some payment despite incomplete performance.

2. 2

   What is the doctrine of substantial performance?

   Model answer

   Substantial performance allows recovery of the contract price less the cost of putting defects right. The doctrine applies where the work is essentially complete.

3. 3

   Which case allowed recovery for substantially performed decorating work?

   Model answer

   Hoenig v Isaacs [1952] concerned a flat decorated for £750 with defects costing £55 to remedy. The decorator recovered the price less the cost of the repairs.

4. 4

   Which case refused substantial performance for a heating system?

   Model answer

   Bolton v Mahadeva [1972] concerned a heating system that gave off fumes and did not heat the house. The defects were so serious that nothing was recoverable.

5. 5

   How do Hoenig v Isaacs and Bolton v Mahadeva differ?

   Model answer

   Hoenig v Isaacs involved minor defects in work that broadly achieved its purpose. Bolton v Mahadeva involved defects that defeated the whole purpose of the installation.

6. 6

   Which case applied substantial performance to a building contract?

   Model answer

   Dakin & Co v Lee [1916] allowed builders to recover where the work was finished but defective in parts. The employer had received substantially what was bargained for.

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