Clegg v Henwood

In *Clegg v Henwood and Anor* [1998] NSWCA 60, the New South Wales Court of Appeal considered a dispute between the appellant, Mr Clegg, and the respondents, Mr and Mrs Henwood. The case concerned the appellant's claim for damages for breach of contract and negligence arising from the respondents' failure to complete the sale of a property. The appellant alleged that the respondents had repudiated the contract for sale by failing to settle on the agreed date and by subsequently selling the property to a third party.

The primary legal issues before the Court of Appeal were whether the respondents' conduct constituted a repudiation of the contract, and if so, whether the appellant had accepted that repudiation. The court also had to determine whether the appellant had suffered any loss as a result of the alleged breach, and if so, the appropriate measure of damages.

The Court of Appeal found that the respondents' failure to settle on the agreed date, coupled with their subsequent sale of the property to another party, amounted to a clear repudiation of the contract. The court held that the appellant had accepted this repudiation by commencing proceedings for damages. In assessing damages, the court applied the principle that the appellant was entitled to be placed in the position they would have been in had the contract been performed. This involved considering the difference between the contract price and the market value of the property at the time of the breach, as well as any consequential losses.

The Court of Appeal dismissed the appeal, upholding the primary judge's finding that the respondents had repudiated the contract and that the appellant was entitled to damages. The court affirmed the quantum of damages awarded by the primary judge.