Entire contract CASES
In English law, an entire contract requires complete performance of contractual obligations before any payment or obligations by the other party become enforceable.
Definition and Principles
An entire contract means obligations cannot be divided or partially completed for partial payment or benefit. Full performance is typically a prerequisite for entitlement.
Example Cases
- Cutter v Powell (1795): Sailor’s estate denied wages due to incomplete voyage; contract was entire, requiring full completion.
- Sumpter v Hedges (1898): Partial construction work was insufficient for any payment under an entire contract.
Example Clauses
- “Payment due only upon full completion and satisfactory delivery.”
- “No partial payments shall be made unless expressly agreed otherwise.”
Legal Consequences
Failure to completely perform obligations generally forfeits entitlement unless exceptions—such as acceptance of partial performance—are clearly established.
Practical Importance
Understanding entire contracts helps parties clarify performance requirements, manage expectations, and avoid disputes over partial completion and payment obligations.
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A builder abandoned a lump-sum contract after completing part of the work. The owner finished the project. The court held the builder could not claim for the work done, as the owner had no choice but to accept it. He could, however, claim for loose materials the owner used. Facts The plaintiff, a builder, entered into a contract with the defendant to build two houses and stables on the defendant’s land for a lump sum of £565. The plaintiff completed part of the work, valued at approximately £333, and received partial payment. He then informed the defendant that he had
A contractor completed decorating work with some defects. The client refused to pay the balance, arguing the contract was not wholly performed. The court held that as the contract was substantially performed, the contractor was entitled to the full price, less the cost of rectifying the defects. Facts The plaintiff, Mr Hoenig, a decorator, was contracted by the defendant, Mr Isaacs, to decorate and furnish the defendant’s one-room flat for a lump sum of £750. The terms stipulated that payment would be made as the work proceeded, with the balance due on completion. The defendant paid £400 in instalments but
A sailor was promised a lump sum for a voyage from Jamaica to Liverpool but died before arrival. His widow sued for a proportionate payment but failed. The court ruled the contract was entire and required full performance for any payment to be due. Facts The defendant, Powell, the master of the ship ‘Governor Parry’, engaged T. Cutter to act as second mate for a voyage from Kingston, Jamaica to Liverpool. The defendant issued a promissory note which stated: ‘Ten days after the ship ‘Governor Parry,’ myself master, arrives at Liverpool, I promise to pay to Mr. T. Cutter the
Facts The plaintiff, Mr Bolton, agreed to install a combined central heating and hot water system in the defendant’s, Mr Mahadeva’s, home for a lump sum price of £560. Upon completion, the defendant complained that the system was defective. The defects were significant: the system failed to heat the house adequately, with the heat output being substantially lower than it should have been, and it produced fumes in the living room, making it uncomfortable and unsafe. The cost to remedy these defects was assessed by the trial judge to be £174.50. The defendant refused to pay any portion of the
