Contract; breach; partial performance; acceptance of partial performance; duty to pay pro rata for accepted performance.
Facts: Tardiani and others were employed by Steele to cut firewood. The agreement provided that payment would be made at the rate of six shillings per ton of wood cut in six foot lengths and split six inches in diameter. Tardiani and the others cut 1,500 tons of timber but split it into pieces ranging from six to fifteen inches in diameter.
Issue: Was Tardiani entitled to payment for the work done?
Decision: Although performance was incomplete, Steele did not choose to reject the work done. Having accepted it, he had to pay for the value of the work.
Reason: The contract was not substantially completed: it was only partly performed. However, Steele was obliged to pay for the value of the work done by the woodcutters. This was because, knowing that the woodcutters were splitting some of the wood to a diameter of more than six inches, Steele had nevertheless said he would pay the woodcutters when the wood was eventually sold to customers. He had also allowed Tardiani to finish working without requiring him to split the thicker logs properly. Accordingly, the court decided that Steele had chosen not to exercise his right to insist on complete performance. Furthermore, because Steele had accepted the benefit of the partial performance, he was bound to pay the woodcutters on a quantum meruit basis, that is, payment for the actual value of the work they had done (as distinct from the agreed price).