Examination Timing: 00H00M01S
John entered into a contract with Sarah for the purchase of her vintage car. The contract stipulated that the car must be delivered by 1st May. Due to unforeseen circumstances, Sarah was unable to deliver the car until 3rd May. John claims he no longer wants the car as it was not delivered on the agreed date.
Which of the following statements best describes John's 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, John 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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