Late completion – remedies available Flashcards
What is the buyer entitled to if the seller’s plan or statement is misleading?
Damages sufficient to put the buyer in the position they would have been in had the error not occurred.
Under what conditions can the buyer rescind the contract?
If there was a fraudulent or reckless error, or if the property differs substantially in quality, quantity, or tenure from what was expected.
What time is completion required under the Standard Conditions of Sale?
Completion must occur no later than 2pm on the specified day.
What happens if completion is delayed beyond 2pm?
It constitutes a technical breach, allowing the innocent party to claim interest at the contract rate.
When can the innocent party rescind the contract for a delay in completion?
Only if the contract specifies that time is of the essence or if they serve a notice to complete.
What does a notice to complete do?
It makes time of the essence, giving the defaulting party 10 working days to complete.
What happens if the buyer defaults and fails to complete within 10 days?
The seller may rescind the contract, keep the buyer’s deposit, resell the property, and claim damages for losses.
What can the buyer do if the seller defaults?
The buyer may rescind the contract, reclaim the deposit with interest, and claim damages sufficient to restore them to their expected position.
What is “specific performance”?
An order requiring the breaching party to complete the contract, sought because land is considered unique.
What are potential remedies for breach after completion?
Misrepresentation can lead to rescission; misdescription can lead to rescission and damages; breach of title guarantee covenants leads to rare claims.
