Cases - Lombard North Central Plc v Butterworth
Record details
- Name
- Lombard North Central Plc v Butterworth
- Date
- [1987]
- Citation
- 1 AII ER 267
- Legislation
- Keywords
- Construction claim -time for completion - time of the essence - termination of contract - delays - minor delays
- Summary
-
The defendant was the lessee of a computer under a contract of hire made with the claimant in 1981. The contract contained a term requiring punctual payment of each quarterly rental payment was 'to the essence' of the contract.
The first 2 instalments under the contract were made promptly, but the next three were late. The claimant terminated the contract and retook possession of the computer. The Court of Appeal held that where a contract contains a condition making time is of the essence, a party will have the right of determination if that condition is breached, irrespective of the magnitude of the other party's breach. Thus, it would appear that an employer under a construction contract containing such a term would be empowered to eject the contractor from site even if the delays are minor.