Monday 15 July 2024
Dear Subscriber,
I hope you had a great weekend. Please see below for the question, the answer to the previous question and associated resources. This is the web version of this newsletter.
GOOD LUCK TO EVERYONE STARTING SQE1 TODAY!!!
Question: Tom, a professional landscaper, entered into a contract with Green Gardens Ltd. to provide landscaping services for their new commercial property. The contract stipulated that Tom would complete the landscaping work within three months for a total fee of £15,000, with £5,000 to be paid upfront and the remaining £10,000 upon completion. Tom started the work as agreed but experienced significant delays due to unforeseen weather conditions and shortages of materials. As a result, the project extended to five months. Green Gardens Ltd. refused to pay the remaining £10,000, arguing that Tom breached the contract by failing to complete the work on time. Tom believes that he is entitled to the remaining payment despite the delays.
Which of the following principles is most relevant in determining whether Tom can recover the remaining £10,000 for his services despite the delays?
- The principle of frustration
- The principle of substantial performance
- The principle of quantum meruit
- The principle of anticipatory breach
- The principle of liquidated damages
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Study Material: For more on the topic of this week’s question see the video linked here and if you are looking for a relevant title*, see here. Free Study Planner: You can download our SQE1 Study Planner for the January 2025 exam by clicking here.
Answer and feedback to last week’s question: ABC Ltd is involved in a commercial dispute with XYZ Ltd over a breach of contract. ABC Ltd has filed a claim using the Part 7 procedure under the Civil Procedure Rules. After filing the claim, both parties are required to complete and exchange allocation questionnaires. The case has been allocated to the multi-track, and the court has issued directions for managing the case towards trial. However, XYZ Ltd fails to comply with one of the court’s directions, which requires them to disclose certain documents by a specified deadline. ABC Ltd wants to ensure that the case proceeds without further delays and seeks guidance on how to address XYZ Ltd’s non-compliance.
What procedural step can ABC Ltd take under the Civil Procedure Rules to address XYZ Ltd’s failure to comply with the court’s directions?
- Apply for summary judgment against XYZ Ltd
- Apply for a stay of proceedings until XYZ Ltd complies with the directions
- Apply for an order for specific performance of the contract
- Apply for an unless order, requiring XYZ Ltd to comply with the directions or face sanctions
- Apply for mediation to resolve the dispute
Correct Answer: 4. Apply for an unless order, requiring XYZ Ltd to comply with the directions or face sanctions. Feedback: Under the Civil Procedure Rules, when a party fails to comply with court directions, the other party can apply for an “unless order.” An unless order stipulates that unless the non-compliant party fulfils the specified direction by a certain date, they will face specified sanctions, such as their defence being struck out or judgment being entered against them. This procedural step ensures that the case progresses and encourages compliance with court orders. Applying for summary judgment (1) or specific performance (3) are not appropriate remedies for non-compliance with procedural directions. A stay of proceedings (2) would halt the progress of the case, which is not desirable in this context. Mediation (5) is an alternative dispute resolution method and not a procedural step to enforce compliance with court directions. Therefore, the correct course of action for ABC Ltd is to apply for an unless order.
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All the best
Dr Ioannis Glinavos
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