Raineri v Miles (1981) Ac 1050; (1980) CLJ 21

In this case it was held that a clause within a contract for the sale of land providing for completion on a specified day could not in the absence of a clear context, be construed as meaning that completion could take place within a reasonable period after the date fixed.

This was the case even though time was not expressed to be of essence t0 the contract. The vendors under such a contract were held to be in breach of the contract when they failed to complete on the contractual date.

Edmund-Davies LJ : "The fact that time had not been declared to be of the essence does not mean that the express date for completion could be supplanted by the court's treating it as a mere 'target' date and, in effect, enabling the defaulting party to insert into the contractual provision some such words as '... or within a reasonable time thereafter'."

It was further held that breach of a contractual stipulation as to time which was not of the essence of a contract was not such a breach as would entitle the innocent party to treat the contract as terminated or which would prevent the defaulting party from suing for specific performance but nevertheless was a breach of the contract and entitled the injured party to damages, if he had in fact suffered damage.

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