swarb.co.uk - law index
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Financial Services - From: 1985 To: 1989
This page lists 4 cases, and was prepared on 20 May 2019.
Lombard North Central v Butterworth [1986] EWCA Civ 5; [1987] QB 527; [1987] 1 All ER 267; [1987] 2 WLR 7
31 Jul 1986
CA
Lawton, Mustill, Nicholls LJJ
Financial Services, Contract
The defendant entered into a hire-purchase contract for a computer, time being stipulated to be "of the essence" in relation to the payment obligations. He defendant defaulted, and the plaintiff took possession of the goods, and and sought payment of the balance due. Held: Time is of the essence where the parties have expressly stipulated in their contract that time is to be of the essence. The same result will follow if the contract contains a clause to the effect that any breach of such a clause will entitle the innocent party to terminate (or cancel) the agreement. The injured party is relieved of any obligation that remains unperformed on his part. In addition the injured party may claim for damages on the basis that upon termination of the contract the obligations of both parties remaining unperformed are brought to an end.
Mustill LJ said: "A stipulation that time is of the essence in relation to a particular contractual term, denotes that timely performance is a condition of the contract. The consequence is that delay in performance is treated as going to the root of the contract, without regard to the magnitude of the breach. It follows that where a promisor fails to give timely performance of an obligation in respect of which time is expressly stated to be of the essence, the injured party may elect to terminate and recover damages in respect of the promisor's outstanding obligations, without regard to the magnitude of the breach."
1 Cites
1 Citers
[ Bailii ]
Phoenix General Insurance Co of Greece SA v Halvanon Insurance Co Ltd; CA 1987 - [1988] QB 216; [1987] 2 All ER 152
In re Courage Group's Pension Schemes Ryan v Imperial Brewing and Leisure Ltd [1987] 1 WLR 495; [1987] 1 All ER 538
1987
ChD
Millett J
Financial Services, Trusts
It was possible to amend the provisions of a pension scheme provided the amendments did not conflict with the purposes of the scheme. How was a court to identify such purposes: "It is trite law that a power can be exercised only for the purpose for which it is conferred, and not for any extraneous or ulterior purpose. The rule-amending power is given for the purpose of promoting the purposes of the scheme, not altering them. Before I consider this question, I should make some general observations on the approach which I conceive ought to be adopted by the court to the construction of the trust deed and rules of a pension scheme. First, there are no special rules of construction applicable to a pension scheme; nevertheless, its provisions should wherever possible be construed to give reasonable and practical effect to the scheme, bearing in mind that it has to be operated against a constantly changing commercial background. It is important to avoid unduly fettering the power to amend the provisions of the scheme, thereby preventing the parties from making those changes which may be required by the exigencies of commercial life. This is particularly the case where the scheme is intended to be for the benefit not of the employees of a single company, but of a group of companies. The composition of the group may constantly change as companies are disposed of and new companies are acquired; and such changes need to be reflected by modifications to the scheme. Secondly, in the case of an institution of long duration and gradually changing membership like a club or pension scheme, each alteration in the rules must be tested by reference to the situation at the time of the proposed alteration, and not by reference to the original rules at its inception. By changes made gradually over a long period, alterations may be made which would not be acceptable if introduced all at once. Even the main purpose may be changed by degrees." and "So the main purpose of a club or pension scheme may be enlarged by appropriate amendments to the rules; and once it becomes too late to challenge the amendments, the enlarged purposes become the new basis by reference to which any further proposed changes must be considered."
1 Cites
1 Citers
In re an Inquiry Under The Company Securities (Insider Dealing) Act 1985; HL 1988 - [1988] AC 660
