Termination for Delay

Question 1

What is the difference between express time and NO express time?

Answer 1

• Express = ‘Finish by 25th June’
• No Express = ‘Finish as soon as possible’

Question 2

When can a contract be terminated for delay?

Answer 2

If time is CLEARLY a condition –> aggrieved party can terminate contract at ANY time after due date b/c ‘time is of the essence’

Question 3

When is time considered ‘of the essence?’

Answer 3

• If parties have expressly indicated timing is essential –> it is usually considered by courts that time is of the essence
• If parties NOT state thos –> time only considered if that’s what parties intended it to be

Question 4

What about Sales of Goods Contracts for time?

Answer 4

• Time is usually considered as ‘essential’ in mercanetile contracts

Question 5

What if time is NOT of the essence, when will delay constitute as repudiation?

Answer 5

If general test of repudiation is satisfied –> delay is SO long or is in circumstances that is evinces an intention not to be bound by the contract
- After notice procedure: the breaching party is given notice to perform within a reasonable time but fails to do so

Question 6

When can notice be given?

Answer 6

If express term –> as soon as delay occurs
If non-express term –> within reasonable timeframe

Question 7

What must be contained in a ‘Notice’ for it to be valid?

Answer 7

1. Specify performance required and provide a reasonable time for performance
2. Specify consequences = notice must clearly convey consequences of non-compliance

Question 8

What if a Notice is given at the right time with the right content?

Answer 8

–> Failure to comply MAY lead to repudiation