When is a breach repudiatory?
In October 2007, Ampurius and Telford entered into a contract for the development of property on a site in south London. The contract included clauses requiring Telford to ensure the work was carried out with ‘due diligence’ and that Telford would use ‘reasonable endeavours to procure’ that the work was completed by the target dates or as soon as reasonably possible thereafter.
Set against the backdrop of the ‘credit crunch’ and collapse of the property market, in March 2009 Telford put part of the development on hold. In October 2010 — just after Telford had recommenced work — Ampurius sought to end the contract on the basis that the cessation of work amounted to a repudiatory breach (in other words, a breach that entitles the aggrieved party to terminate the contract and sue for damages).
The High Court agreed that there had been a repudiatory breach. Telford appealed. The Court of Appeal reviewed the leading authorities on the test for repudiatory breach and that the test was whether the breach deprived the injured party of substantially the whole of the benefit of the contract. However, the court went further and stated that there was also authority for the test being whether the innocent party was deprived of a ‘substantial part of the benefit’, as opposed to substantially the whole benefit. The court said that, in practice, these were merely different applications of the same test…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Pyranha Mouldings Ltd has become the 10th company to be convicted in the UK under the Corporate Manslaughter and Corporate Homicide Act 2007.
Employers are currently focused on having the correct policies and forms in place for shared parental leave but they should not overlook the fact that there are a number of additional changes to adoption and parental leave due to come into force from 5 April 2015.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.