A contract of sale in Queensland contains a clause stating 'time is of the essence' regarding the settlement date. The purchaser is ready to settle but the vendor cannot provide vacant possession until three days after the contractual settlement date due to tenant issues. What is the most likely legal consequence?
Correct Answer
B) The purchaser may terminate the contract and claim damages for the breach
When 'time is of the essence' clauses apply, strict adherence to settlement dates is required. The vendor's inability to provide vacant possession by the settlement date constitutes a fundamental breach, giving the purchaser the right to terminate the contract and potentially claim damages for losses incurred.
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A contract of sale contains a clause stating 'Time is of the essence' regarding the settlement date. The purchaser is unable to settle on the specified date due to delayed finance approval. What is the most likely legal consequence?
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