The Judgment Stress Test · For lawyers · Free
The late apples
The decided case
Fenwick runs a market stall. He ordered 200 crates of apples from Orchard Supplies, a wholesaler, under a written contract that said ‘delivery by 1 October’. The contract did not say that time was of the essence, and Fenwick never told Orchard that the date mattered for any special reason.
The apples arrived on 9 October, in good condition. Fenwick refused to take them. He said they were late and that he had lost a week of sales, which he valued at £400.
Orchard sued for the price of the apples. The court held that Fenwick had no right to refuse the delivery. He had to pay the price, less £400 for his loss from the delay.
The rules the court applied
- Rule A. If time is of the essence, late delivery lets the buyer terminate the contract. Time is of the essence if the contract says so, or if the seller knew that delivery on the date was vital to the buyer.
- Rule B. If time is not of the essence, late delivery lets the buyer claim damages for loss caused by the delay, but not terminate, unless the delay is so long that it defeats the main purpose of the contract.
- Rule C. A buyer who knows of the delay and accepts the goods without objecting loses the right to terminate for it, but may still claim damages for the loss it caused.
The decision
Orchard won the price, reduced by £400 damages for the delay. Time was not of the essence: the contract did not say so and Orchard did not know the date was vital. Under Rule B Fenwick could claim damages for the delay, which the court set at £400, but he could not terminate or refuse the goods, because eight days late did not defeat the purpose of buying apples to sell.
Everything you need is on this page: no outside law, and no tools. All places, cases and people are fictional (the Republic of Eastmark). For each change below, change only that one fact and keep everything else as in the decided case.
Change 1 of 6
The contract contains the sentence: ‘Time is of the essence for delivery.’ The rest is as before.
Change 2 of 6
Before the contract was signed, Fenwick told Orchard in writing that the apples were for a harvest festival on 2 October and that later delivery would be useless to him.
Change 3 of 6
The apples were Cox apples instead of Braeburn apples, and the contract named the variety correctly.
Change 4 of 6
The contract says that time is of the essence. The apples arrive on 9 October. Fenwick notices the delay, takes the crates, sells them all without a word, and then refuses to pay the price in full.
Change 5 of 6
The apples arrive on 2 October, one day late, and Fenwick refuses them. He cannot show any loss from the one day.
Change 6 of 6
The apples arrive on 15 January, more than three months late, and Fenwick refuses them.
Professional skills training with fictional material. It is not legal advice and is not accredited by any court, regulator or professional body.