The court considered whether a contract had been validly rescinded. The validity of a completion notice was challenged on the ground that the vendors were not ready, able and willing to complete the sale when the notice was served because they were in breach of their fiduciary obligation to look after the subject property. Without informing the purchasers, the vendors had permitted a change in the lessee and user of part of the property.
Held: It was completely uncommercial to require a vendor to be considered unable or unwilling or unready to complete merely because he may have failed in some respect to carry out his duty between contract and completion in looking after the property. That default would sound in damages.
Browne-Wilkinson J said: ‘the fact that a vendor may have failed in some respect to carry out his duty between contract and completion in looking after the property does not mean that he is unable or unwilling or unready to complete . . If any damage has occurred in the interim the vendor would have to make it good in damages. It does not prevent a completion of the contract.’
Judges:
Browne-Wilkinson J
Citations:
(1980) 39 P and CR 395, (1979) 39 P and CR 395
Jurisdiction:
England and Wales
Cited by:
Cited – Eyestorm Ltd v Hoptonacre Homes Ltd CA 19-Dec-2007
The appellant had agreed to take leases on a development of the defendant, hoping to sell the apartments on at a profit. After difficulties, the appellant refused to complete, and the defendant forfeited the deposits.
Held: Eyestorm’s appeal . .
Lists of cited by and citing cases may be incomplete.
Contract, Land
Updated: 07 May 2022; Ref: scu.263182