Samarenko v Dawn Hill House Ltd [2011] EWCA civ 1445 (01 December 2011)

Samarenko v Dawn Hill House Ltd [2011] EWCA civ 1445 (01 December 2011)

Failure to pay the deposit on the stipulated date was a repudiatory breach of contract, entitling the seller to terminate. Alternatively, time was validly made of the essence by notice, and the buyer's failure to pay within the notice period also constituted a repudiatory breach. There was no causal link between the seller's refusal to allow inspection and the buyer's failure to pay the deposit.

Citation
[1978] AC 904
Parties
Claimant / Respondent: Alexey Samarenko; Defendant / Appellant: Dawn Hill House Limited
Jurisdiction
England and Wales
Judgment Date
01 December 2011
Procedural Posture
Appeal From Summary Judgment in Chancery Division (high Court) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Repudiatory Breach, Deposit Payment, Time of the Essence, Sale of Land, Equitable Intervention
Contract Law Property Law Repudiatory Breach Deposit Payment Time of the Essence Sale of Land Equitable Intervention

Case Brief

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Parties

Alexey Samarenko

Claimant / Respondent

Dawn Hill House Limited

Defendant / Appellant

Procedural Posture

Appeal From Summary Judgment in Chancery Division (high Court) / Court of Appeal Judgment

Legal Issues

  1. 1 Is a failure to pay a deposit on time under a contract for the sale of land necessarily a repudiatory breach entitling the seller to terminate?
  2. 2 If not, was time successfully made of the essence in this case, entitling the seller to terminate?

Ratio Decidendi

Failure to pay the deposit on the stipulated date was a repudiatory breach of contract, entitling the seller to terminate. Alternatively, time was validly made of the essence by notice, and the buyer's failure to pay within the notice period also constituted a repudiatory breach. There was no causal link between the seller's refusal to allow inspection and the buyer's failure to pay the deposit.

Court Disposition

Appeal dismissed

Orders

  • Summary judgment for the claimant/respondent (Mr Samarenko) affirmed
  • Declaration that the contract was validly terminated