Delayed Completion and Remedies

Question 1

What 2 things may B be entitled to due to an error of S after exchange but before completion?

Answer 1

1. Damages
2. Rescission (if conditions are met)

Question 2

What are the only 2 ways in which B is entitled to rescind a contract after exchange but before completion?

Answer 2

1. S’s error was fraudulent/reckless; or
2. Taking of property would be substantially different than they expected to their detriment

Question 3

What is the time in which completion must occur by under the Standards Conditions of Sale?

Answer 3

2pm

Question 4

Any delay in completion is a breach which entitles the innocent party to ________ and and at the very least, _______

Answer 4

damages, interest

Question 5

When is payment received after 2pm (or time set in the contract) treated as been received?

Answer 5

On the next day

Question 6

What can an innocent party elect to take instead of compensation if there is a delay in completion for a property being sold/bought which has a tenant in situ?

Answer 6

Rental income until completion

Question 7

What must a contract specify in order to give an innocent party the right to rescind due to delay in completion?

Answer 7

That time is of the essence

Question 8

How can an IP cancel a contract for delay in completion if a contract doesn’t have a time of the essence clause?

Answer 8

If IP serves a notice to complete

Question 9

What are three requirements in order for a party to serve a notice to complete any time after the completion date?

Answer 9

1. Ready
2. Able
3. Willing to complete

Question 10

How long does a defaulting party have to complete the day after a notice is served on them?

Answer 10

10 working days

Question 11

What are 4 options the seller has if the defaulting party is the buyer and they fail to complete in the notice period?

(clue: RRRD)

Answer 11

1. Rescind
2. Retain deposit
3. Resell the property
4. Damages

Question 12

What 3 options does the buyer have if the defaulting party is the seller and they fail to complete in the notice period?

Answer 12

1. Rescind
2. Reclaim their deposit money with interest
3. Damages

Question 13

Because land is unique, if a party fails to complete, what else can an IP seek an order for as well as damages?

Answer 13

Specific performance

Question 14

What two viable claims are available for the buyer after completion?

Answer 14

1. Breach of title guarantee
2. Damages for misrepresentation