Sumpter v Hedges [1898]

Court: Court of Appeal

Facts: Sumpter, a builder, agreed to construct houses and stables for Hedges for £560. After completing work valued at £333, Sumpter ceased construction due to lack of funds, leaving materials behind. Hedges completed the buildings using Sumpter’s materials, and Sumpter sued for the remaining payment.

Issue: Can a builder recover payment for unfinished work or materials left behind when the contract is for a lump sum?

Held: The court found that since Sumpter abandoned the work, he was not entitled to claim for the uncompleted structures. However, Hedges was required to pay for the value of the materials used.

Key Judicial Statement: AL Smith LJ emphasized that a contract for a lump sum cannot be partially enforced unless there is evidence of a new contract or agreement to pay for the incomplete work.

💡 Leveluplaw: In cases where a contract is abandoned, recovery on a quantum meruit basis requires evidence of a new agreement to pay for the completed work or materials.