SQE1 · FLK2 · Property Practice
Remedies for delayed completion — SQE1 Property question
A worked single-best-answer question on remedies for delayed completion, with why each wrong option is wrong — the way SQE1 traps candidates.
Remedies for delayed completion
Wendy agreed to buy a house from Xavier under the Standard Conditions of Sale (5th edition), with completion fixed for 30 April. On 30 April Wendy's funds were not available and completion did not take place. Xavier is ready, able and willing to complete and wants to put pressure on Wendy, but would also like to be free to sell elsewhere if she continues to delay.
What is Xavier's best course of action?
- ARescind the contract immediately, because the completion date has passed.
- BServe a notice to complete giving Wendy 28 days to complete.
- CServe a notice to complete, which requires completion within ten working days of giving the notice, excluding the day of service, and makes time of the essence.
- DWait, because only the defaulting buyer can serve a notice to complete.
- EClaim compensation for late completion, which is his only remedy under the Standard Conditions.
Show answer and reasoning
C is the best answer. Under Standard Condition 6.8, at any time on or after the completion date a party who is ready, able and willing to complete may give the other a notice to complete. The parties must then complete within ten working days of giving the notice, excluding the day on which it is given, and time is of the essence. If Wendy then fails to complete, Xavier will be able to rescind and resell.
Rule: Under the Standard Conditions a notice to complete requires completion within ten working days and makes time of the essence.
- A Time is not of the essence of the completion date under the Standard Conditions, so failure to complete on that date does not itself justify rescission. (wrong rule)
- B The Standard Conditions fix the period at ten working days, not 28 days. (wrong rule)
- D A notice to complete may be served by a party who is ready, able and willing to complete, which here is Xavier. (wrong rule)
- E Compensation is available, but it does not give Xavier the right to terminate and resell, which a notice to complete does. (answers a different question)
Source: Standard Conditions of Sale (5th edn, 2018 revision), SC 6.8