Union Eagle Ltd v Golden Achievement Ltd [1997] UKPC 5 is an English contract law

English contract law

English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...

 case, concerning the right to terminate performance of a contract.

Facts

Union Eagle paid 10% of the HK$4.2m price for a Hong Kong flat as a deposit. Time was said to be ‘of the essence’. Completion was meant to be 5pm 30 September 1991, and clause 12 said failure to complete meant the deposit was forfeit and the agreement rescinded. They were 10 minutes late. Union Eagle sued for specific performance, arguing relying on such a legal right was unconscionable.

Advice

Lord Hoffmann for the Privy Council advised that certainty was needed in the business world, particularly in a volatile market. Accordingly the contract's terms should be strictly enforced, and Union Eagle lost its deposit.