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Review Your SQE 1 Practice Records

Examination Timing: 00H00M01S

James, an entrepreneur, entered into a contract with Olivia to purchase her vintage car for £20,000. The contract specified that the car must be delivered by 1st June. Olivia failed to deliver the car until 3rd June due to a delay in transportation. James now claims that he no longer wants the car because it was not delivered on the agreed date. 

Which of the following statements best describes James's legal position?

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The right to terminate a contract depends on whether the breached term is a condition or a warranty. If the time of delivery is not explicitly stated as being of the essence or a condition of the contract, a minor delay (such as two days) does not entitle the innocent party to terminate the contract unless it deprives them of substantially the whole benefit of the contract. In this scenario, since the delay was minor, James is unlikely to have the right to terminate. 

Key Point: Minor delays do not typically give rise to the right to terminate a contract unless time is of the essence or the delay substantially deprives the innocent party of the contract's benefit.

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