Guichard & Ano v Savy (CS 17/2017) [2018] SCSC 8190 (10 June 2018)

Guichard & Ano v Savy (CS 17/2017) [2018] SCSC 8190 (10 June 2018)

The defendant breached the Promise of Sale by failing to complete the access road and remove the boulder within the agreed period. The penalty clause is enforceable for each month of delay after the breach, not only after completion. Force majeure (heavy rains) is accepted for a limited period, reducing the penalty by one month. Moral damages are not awarded as the penalty clause covers such loss.

Citation
[2018] SCSC 8190
Parties
Plaintiff: Dominique Guichard; Plaintiff: Suzanne Guichard; Defendant: David Savy
Court
Supreme Court
Jurisdiction
Seychelles
Judgment Date
10 June 2018
Case Number
CS 17/2017
Procedural Posture
Civil / Judgment
Outcome
Judgment for the plaintiffs in part
Legal Topics
Breach of Contract, Specific Performance, Penalty Clauses, Force Majeure, Damages
Source Language
English
Contract Law Breach of Contract Specific Performance Penalty Clauses Force Majeure Damages

Case Brief

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Parties

Dominique Guichard

Plaintiff

Suzanne Guichard

Plaintiff

David Savy

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the defendant breached the Promise of Sale by failing to complete the access road and remove the boulder as agreed.
  2. 2 Whether the penalty clause is immediately enforceable upon breach or only after completion of the road.
  3. 3 Whether force majeure excuses the defendant's non-performance.

Ratio Decidendi

The defendant breached the Promise of Sale by failing to complete the access road and remove the boulder within the agreed period. The penalty clause is enforceable for each month of delay after the breach, not only after completion. Force majeure (heavy rains) is accepted for a limited period, reducing the penalty by one month. Moral damages are not awarded as the penalty clause covers such loss.

Court Disposition

Judgment for the plaintiffs in part

Orders

  • Defendant to pay plaintiffs €46,200 (or equivalent in Seychelles Rupees) with interest at the legal rate, representing the penalty for breach, less one month for force majeure.
  • Penalty continues to apply monthly until road is completed.