1 Comments Commercial law, litigation, contracts, IP, property law
Under the general law where time is of the essence (or an essential term) of the contract, each party is bound to perform his or her obligations strictly in accordance with their terms and failure to do so will constitute a breach entitling the other party to rescind the contract at once, at least providing the breach is of an interdependent obligation, or of an essential term or a sufficiently serious breach of a non-essential term. Indeed, if a vendor validly rescinds a contract upon the failure of a purchaser to complete in accordance with an essential time stipulation, then, in the absence of fraud, accident or mistake or other conduct of the vendor which has in some significant respect caused or contributed to the breach of the essential time stipulation, the contract will be at an end and the purchaser will have no basis for seeking specific performance. Further, it is up to you if you want to agree to the new terms of extending the contract period. You are not obligated to do so. Read the contract sufficiently to give you information of whether there is any way out of the contract for the buyer. If there isn't, you don't have to agree to an extension and you can then rescind the contract. Speak to your solicitor first and work out the details with them. Take any advice they give you before you take any action. In this case, legal advice on your specific case is paramount.