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Failure to perform an instalment of a contract may allow the other party to avoid that instalment or the whole contract : BPP text book
Scenario:
Payzu Ltd v Saunders 1919The facts: The parties had entered into a contract for the supply of goods to be delivered and paid for by instalments. The claimants failed to pay for the first instalment when due, one month after delivery. The defendants declined to make further deliveries unless the claimants paid cash in advance with their orders. The claimants refused to accept delivery on those terms. The price of the goods rose, and they sued for breach of contract.
Decision: the seller had no right to repudiate the original contract. But the claimants should have mitigated their loss by accepting the seller’s offer of delievery against cash payment. Damages were limited to the amount of their assumed loss if they had paid in advance, which was the interest over the period of prepayment.
The decision made, was it not contravening the provision of the convention?“The decision made, was it not contravening the provision of the convention?”
Which convention?
Non-performance is not a convention
Do you mean “contract terms”?
And I’m still not sure why you think the decision was a contravention of anything?
The purchaser has breached the contract by non-payment within the agreed time period
The vendor seeks to carry on with the contract but with a revision to the terms and those terms should have been accepted in an attempt to minimise the purchaser’s loss
I don’t understand your question
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