Facts
- The claimant, Poussard, an opera singer, contracted with the defendants, Spiers, to perform in an operetta for three months with a weekly salary and a set commencement date.
- Defendants held an option to re-engage the claimant for an additional three months at a higher salary.
- The opening performance was rescheduled, with no objection from the claimant.
- Shortly before opening night, the claimant became ill and missed the first three days of the show.
- Defendants hired a replacement singer for those performances.
- Upon recovery, the claimant sought to resume performing, but the defendants refused, electing to terminate the contract.
- The claimant sued for wrongful dismissal after the defendants hired a replacement and was initially unsuccessful at trial, with the jury awarding the defendants the cost of hiring a substitute.
Issues
- Does a performer's failure to be present from the commencement date of an engagement constitute a breach of a condition or merely a warranty of the contract?
- Was the defendants’ termination of the contract justified as a repudiation based on the claimant’s absence from the opening performances?
Decision
- The court held that the claimant’s obligation to perform from the outset was a condition rather than a warranty.
- The absence of the claimant from the initial performances justified the defendants’ repudiation and termination of the contract.
- The duty to perform from the beginning was fundamental to the contract’s purpose, given the centrality of the initial performances to the agreement.
- The uncertain duration of the claimant’s illness further justified the defendants’ actions.
Legal Principles
- A condition is a term fundamental to the contract; its breach entitles the innocent party to treat the contract as terminated.
- A warranty is a subsidiary term; its breach allows for damages but does not justify termination.
- The distinction between a condition and a warranty depends on the intention of the parties, assessed through the contractual wording and context.
- Failure by a performer to appear for opening performances represents a breach of condition.
- The importance of the obligation’s timing, particularly where time is of the essence, can determine whether it is a condition.
Conclusion
Poussard v Spiers clarified that failure by a performer to attend the opening performances of an engagement amounts to a breach of condition, thereby entitling the other party to terminate the contract. The case set a precedent distinguishing between conditions and warranties in contract law, emphasizing the significance of the parties’ intentions and the context of the agreement.
