Repudiation of property sale contracts

Copyright © 2025 LexisNexis

Published by a LexisNexis Property Disputes expert

Practice notes

Repudiation of property sale contracts

Copyright © 2025 LexisNexis

Published by a LexisNexis Property Disputes expert

Practice notes

imgtext

Repudiation of a contract occurs where one party communicates to the other (through words or conduct) that they no longer intend to be bound by it, usually by committing a major breach of a significant obligation in the contract. The innocent party can then decide whether to:

•
elect to continue the contract and seek to enforce performance and/or claim damages (see Practice Notes: Specific performance of property agreements and Contractual damages—general principles), or
•
accept repudiation and treat the contract as at an end (known as rescission or discharge for breach). Both parties are discharged from further performance of the contract and the innocent party can sue for damages caused by the repudiation. There must be clear and unequivocal acceptance of the breach. Mere inactivity or acquiescence is generally not sufficient

For guidance on ending a contract by serving notice to complete, see Practice Note: Notice to complete.

Repudiatory breach

To be repudiatory, the breach must go to the root of the contract. Its effect must be to:

•
deprive the innocent party of substantially

Powered by Lexis+^®

Jurisdiction(s):

United Kingdom

Key definition:

Damages definition

What does Damages mean?

The monetary compensation awarded by law to a person for the legal wrong done to him.

Popular documents

Liability for breach of property contract after completion

Liability for breach of property contract after completionThis Practice Note considers when contractual obligations merge on completion of a property contract and remedies that may be available after completion.For contractual remedies in relation to property contracts generally, see Practice Notes:

Notice to complete

Notice to completeThis Practice Note covers what ready, willing and able means and the consequences of serving an invalid notice. A party who is ready, willing and able to complete can serve a notice to complete and make time of the essence so that the contract may be rescinded. The Standard

Can a deposit held as stakeholder be released if one set of solicitors is unresponsive or provides

Can a deposit held as stakeholder be released if one set of solicitors is unresponsive or provides spurious reasons for withholding consent?When purchasing property (either freehold or leasehold, residential or commercial), usually a deposit is payable on exchange of contracts, which will be held by

Rectification—mutual mistake

Rectification—mutual mistakeRectification is an equitable remedy by which the court can correct an error of expression where a written document does not match the parties' intention. It is available only in relation to written contracts and other documents. An oral agreement cannot be rectified.