Peter Manu, a manufacturer, entered into a contract to make 10,000 candles for Paul Mwadali, a wholesaler. Paul Mwadali issued an order to Peter Manu for the supply of the candles. Subsequently, there was a major power blackout which lasted for three days thereaffecting the operations at Peter Manu’s processing plant. In addition, Peter Manu’s machine broke down due to the power blackout after he had made 8,000 candles. Peter Manu has submitted a claim to Paul Mwadali for payment for the 8,000 candles. Paul Mwadali has refused to pay Peter Manu on the ground that the contract is not fully executed. Explain the legal principles applicable in the case and advise Peter Manu.

  • Legal principle is discharge of a contract performance.
  • A contract is only discharged if parties precisely perform their obligations in line with the terms otherwise it will not be discharged.
  • However if a person substantially performs the obligations but the workmanship falls short of the contractual specifications in minor details, such person is entitled to the full contract price less the amount needed to complete the contract.

 

In this case Peter is entitled to receive payment for the 8,000 candles.

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