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first is under an entire performance obligation. An early example of this can be found in the old case of Cutter v Powell, under which a seaman agreed to work a ship from its port of embarkation to its destination and back in return for a fixed sum. In the absence of a doctrine of frustration, it was held that, if the round trip was not completed, for whatever reason, the seaman did not become entitled to payment. In other instances, performance obligations on one side may be subdivided with the result that as each part of the total obligation is completed, the other party comes under an obligation to perform his side of the contract. In these circumstances, the performance obligations are described as severable. Typical examples can be found in construction contracts which provide for payment in stages as the work progresses or instalment contracts for the sale of goods under which the buyer is required to pay separately for each instalment as it is delivered. The importance of the distinction between entire and severable obligations is that there are different rules as to the order of performance and in respect of the matter of defective performance. If the seller is under an entire obligation to deliver goods at a particular time, and he fails to do so, the buyer will not be obliged to pay the price. Conversely, if there is a severable instalment contract for the sale of goods and the seller fails to deliver one instalment out of ten, the seller may be able to claim payment for those parts of the work correctly performed. Generally, sale of goods contracts consist of entire obligations. If the seller delivers less or more than the quantity of goods contracted for, the buyer is entitled to reject the entire consignment, subject to minor deviations in which case the court has a discretion in non-consumer transactions to refuse to allow rejection if this remedy can be regarded as unreasonable: Sale of Goods Act 1979
DOI link for first is under an entire performance obligation. An early example of this can be found in the old case of Cutter v Powell, under which a seaman agreed to work a ship from its port of embarkation to its destination and back in return for a fixed sum. In the absence of a doctrine of frustration, it was held that, if the round trip was not completed, for whatever reason, the seaman did not become entitled to payment. In other instances, performance obligations on one side may be subdivided with the result that as each part of the total obligation is completed, the other party comes under an obligation to perform his side of the contract. In these circumstances, the performance obligations are described as severable. Typical examples can be found in construction contracts which provide for payment in stages as the work progresses or instalment contracts for the sale of goods under which the buyer is required to pay separately for each instalment as it is delivered. The importance of the distinction between entire and severable obligations is that there are different rules as to the order of performance and in respect of the matter of defective performance. If the seller is under an entire obligation to deliver goods at a particular time, and he fails to do so, the buyer will not be obliged to pay the price. Conversely, if there is a severable instalment contract for the sale of goods and the seller fails to deliver one instalment out of ten, the seller may be able to claim payment for those parts of the work correctly performed. Generally, sale of goods contracts consist of entire obligations. If the seller delivers less or more than the quantity of goods contracted for, the buyer is entitled to reject the entire consignment, subject to minor deviations in which case the court has a discretion in non-consumer transactions to refuse to allow rejection if this remedy can be regarded as unreasonable: Sale of Goods Act 1979
first is under an entire performance obligation. An early example of this can be found in the old case of Cutter v Powell, under which a seaman agreed to work a ship from its port of embarkation to its destination and back in return for a fixed sum. In the absence of a doctrine of frustration, it was held that, if the round trip was not completed, for whatever reason, the seaman did not become entitled to payment. In other instances, performance obligations on one side may be subdivided with the result that as each part of the total obligation is completed, the other party comes under an obligation to perform his side of the contract. In these circumstances, the performance obligations are described as severable. Typical examples can be found in construction contracts which provide for payment in stages as the work progresses or instalment contracts for the sale of goods under which the buyer is required to pay separately for each instalment as it is delivered. The importance of the distinction between entire and severable obligations is that there are different rules as to the order of performance and in respect of the matter of defective performance. If the seller is under an entire obligation to deliver goods at a particular time, and he fails to do so, the buyer will not be obliged to pay the price. Conversely, if there is a severable instalment contract for the sale of goods and the seller fails to deliver one instalment out of ten, the seller may be able to claim payment for those parts of the work correctly performed. Generally, sale of goods contracts consist of entire obligations. If the seller delivers less or more than the quantity of goods contracted for, the buyer is entitled to reject the entire consignment, subject to minor deviations in which case the court has a discretion in non-consumer transactions to refuse to allow rejection if this remedy can be regarded as unreasonable: Sale of Goods Act 1979
ABSTRACT
In other instances, performance obligations on one side may be subdivided with the result that as each part of the total obligation is completed, the other party comes under an obligation to perform his side of the contract. In these circumstances, the performance obligations are described as severable. Typical examples can be found in construction contracts which provide for payment in stages as the work progresses or instalment contracts for the sale of goods under which the buyer is required to pay separately for each instalment as it is delivered.
