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Contract: Discharge of Contract

Time of performance and tender of performance

  • 3 things to know
  • Components 2 and 3

Overview

Effect of waiving a delivery date, tender of performance and effect of a valid tender of money.

What you need to know

Answer each one before you reveal it.

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Key term

When is time of the essence in a contract?

Key term

Is time normally of the essence in a commercial contract?

Numbers

What does the Sale of Goods Act 1979 provide about the time of payment?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    When is time of the essence in a contract?

    Model answer

    Time is of the essence where the contract says so, or where the subject matter requires it. Failure to perform on time is then a breach of condition.

  2. 2

    Is time normally of the essence in a commercial contract?

    Model answer

    Time of delivery is usually of the essence in a mercantile contract. Certainty of delivery dates matters to businesses working to a schedule.

  3. 3

    What does the Sale of Goods Act 1979 provide about the time of payment?

    Model answer

    Section 10 of the Sale of Goods Act 1979 states that the time of payment is not of the essence. The parties may provide otherwise, and other stipulations as to time depend on the contract.

  4. 4

    Can a party make time of the essence after a delay has begun?

    Model answer

    Charles Rickards Ltd v Oppenheim [1950] allowed a buyer to fix a new final date by giving reasonable notice. Failure to meet the new date then justified refusing the goods.

  5. 5

    What is the effect of waiving a delivery date?

    Model answer

    A party who continues to press for delivery after the date has passed waives the original date. Reasonable notice must be given before time can be made essential again.

  6. 6

    What is tender of performance?

    Model answer

    Tender of performance is an offer to perform the obligation in accordance with the contract. Rejection of a valid tender discharges the party who tendered.

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