Law of Contract Assessment Essay Example | Topics and Well Written Essays - 2500 words

Law of Contract Assessment - Essay Example The competency of the parties to the contract is not under question. It is implied that there exists lawful consideration and the lawful object is the plot of land. Legal position of the seller and buyer Based on the validity of the contract, the legal position derived from the contract is fairly defined in this case. The question of building construction is extraneous to the contract, and going by the facts of the case, the performance of the contract is not contingent upon the building permission. This is also strengthened by the fact that the building permission has never been applied for. The statement of Holger made during the course of conversation with Jaki, the manager of SkyReach â€Å"of course, it [building permission by the local planning department] should be no problem. As I understand it, inner city development is a top priority here† is based on the information available to him, which could not be construed as a statement of an expert by a manager in a real est ate company who is expected to be more knowledgeable in the business. The seller of a property should disclose any material defect in the property. Concealing the information would be an act of fraud. It is only Holger’s understanding, and there is no guarantee or concealment involved. Also, â€Å"the plot is restricted to ‘educational purposes’ only† cannot be treated as defect in property as reservation for various purposes is common; SkyReach could not allege concealment of information, and the contract is also not conditional on specific use of the plot. This aspect is extraneous to the contract, and Jaki had a time of one week to verify the position before entering into the contract after his discussions with Holger. Analysis The permission has been rejected on the grounds that the use of the plot is restricted to ‘educational purposes’ only.   A close analysis of the facts of the case reveals that SkyReach has applied for building perm ission as a rightful owner of the property based on the contract, which it can’t renege. Secondly, reservation of the plot for ‘educational purpose’ exists already, which the SkyReach failed to verify. Thirdly, according to the facts of the case, the sale is not conditional with reference to the purpose for which the plot could be used. The sale of real estate property is enforceable by specific performance in the event of a breach of contract. There are defenses available against specific performance which would avoid specific performance, and the only defence that could be remotely considered as an action in equity is, ‘specific performance would cause severe hardship to SkyReach’, because other defences such as misbehavior and impossibility of performance are not relevant to the case. But, defence against specific performance is not possible due to the reasons discussed under ‘Legal position of the seller and buyer’, based on the fact s of the case and analysis. In Tamplin v James,[1]  Ã‚   defendant, the buyer failed to perform in the contract of sale on the grounds that that he expected that two pieces of garden formed part of the lot, when they were in fact held by a railway company and not the vendor. In this landmark case, the court decreed specific performance for purchase of the land. The defendant’s appeal was unanimously dismissed by the Court of