First Principles of Business Law
Remedies for breach of contract

4. Termination of performance

4.4. Partial performance

 

 

 

A, a manufacturer, agrees to supply B, the owner of a hotel, with 50 tables and 200 matching chairs. The furniture is to be supplied on the first day of the next month. A delivers the 50 tables to B, but no chairs. A says that because there is nothing wrong with the tables, B must at least accept and pay for those. He remains willing to manufacture and supply the chairs. B says that the tables are useless to him without the matching chairs and he does not want to keep them. He does not want to allow A any further time to make the chairs.

(a) By delivering the tables as promised, A has performed a sufficient part of the contract to be entitled to payment. B cannot reject the tables, although he would not be obliged to accept any chairs.

(b) A has partially delivered what was agreed, but even so B is entitled to reject the tables and stop any further performance of the contract, including delivery of the chairs.

 

 

 

 

 

 

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