DD Classics Ltd v Chen [2022] EWHC 1357 (Comm) (29 March 2022)

DD Classics Ltd v Chen [2022] EWHC 1357 (Comm) (29 March 2022)

Time for payment was not of the essence of the contract; the defendant's right to terminate for late payment did not arise. Even if time had been of the essence, the defendant affirmed the contract by continuing to treat it as afoot after the alleged breach, thereby losing any right to terminate for repudiatory breach.

Citation
[2022] EWHC 1357 (Comm)
Parties
Claimant: DD Classics Limited; Defendant: Kent Chen
Jurisdiction
England and Wales
Judgment Date
29 March 2022
Procedural Posture
Commercial Contract Dispute / Summary Judgment Application Under CPR Part 24
Outcome
No summary judgment granted at this stage; defendant given opportunity to apply to amend defence to plead a contractual right to withdraw.
Legal Topics
Summary Judgment, Time of the Essence, Repudiatory Breach, Waiver and Affirmation, Right to Withdraw, Sale of Goods
Contract Law Commercial Law Summary Judgment Time of the Essence Repudiatory Breach Waiver and Affirmation Right to Withdraw Sale of Goods

Case Brief

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Parties

DD Classics Limited

Claimant

Kent Chen

Defendant

Procedural Posture

Commercial Contract Dispute / Summary Judgment Application Under CPR Part 24

Legal Issues

  1. 1 Whether time for payment was of the essence of the contract
  2. 2 Whether the defendant was entitled to terminate the contract for late payment
  3. 3 Whether any right to terminate was lost by waiver or affirmation

Ratio Decidendi

Time for payment was not of the essence of the contract; the defendant's right to terminate for late payment did not arise. Even if time had been of the essence, the defendant affirmed the contract by continuing to treat it as afoot after the alleged breach, thereby losing any right to terminate for repudiatory breach.

Court Disposition

No summary judgment granted at this stage; defendant given opportunity to apply to amend defence to plead a contractual right to withdraw.

Orders

  • Defendant may apply to amend defence to plead a contractual right to withdraw; judgment deferred pending such application.