If a breach concerns non-essential terms and the buyer proceeds to completion, which remedy is typically available?

Prepare for the CILEx Conveyancing Level 6 Exam with our quiz. Study flashcards and multiple choice questions, with tips, hints, and explanations. Get exam-ready!

Multiple Choice

If a breach concerns non-essential terms and the buyer proceeds to completion, which remedy is typically available?

Explanation:
The main idea is that when a breach concerns a non-essential term (a warranty rather than a fundamental condition) and the buyer still goes through with completion, the usual remedy is damages. By completing, the buyer has affirmed the contract, so rescission—unwinding the deal—is generally not available for breaches of non-essential terms. The breach has not struck at the contract’s root, so there’s no grounds to undo what has already happened. Damages are designed to compensate for the loss caused by the breach and the buyer’s financial position after completion. This can cover the difference in value caused by the breach, costs to cure any defects, or other consequential losses directly resulting from the breach. Specific performance is not typical here because the property has already been conveyed and there’s nothing left to compel; and rescission is not appropriate for a non-essential term once completion has occurred. So damages is the appropriate remedy.

The main idea is that when a breach concerns a non-essential term (a warranty rather than a fundamental condition) and the buyer still goes through with completion, the usual remedy is damages. By completing, the buyer has affirmed the contract, so rescission—unwinding the deal—is generally not available for breaches of non-essential terms. The breach has not struck at the contract’s root, so there’s no grounds to undo what has already happened.

Damages are designed to compensate for the loss caused by the breach and the buyer’s financial position after completion. This can cover the difference in value caused by the breach, costs to cure any defects, or other consequential losses directly resulting from the breach. Specific performance is not typical here because the property has already been conveyed and there’s nothing left to compel; and rescission is not appropriate for a non-essential term once completion has occurred. So damages is the appropriate remedy.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy