Can a vendor who is late in signing a contract with a third party who has been late in entering into the contract, take advantage of the other party's performance?
British Columbia, Canada
The following excerpt is from Go Ha & Associates Ltd. v 611414 B.C Ltd., 2018 BCSC 2118 (CanLII):
The law precludes the vendor from taking advantage where he was responsible for the later performance of the other party. The parties to a contract have an obligation of good faith that compels them to honestly conclude a bargain that has honestly been made. This obligation extends to prevent a suddenly reluctant vendor from reneging on improvident bargains by relying on minor technical breaches. If the late-tendering party can show that the delay is attributable to the other party, their right to claim specific performance is preserved: see Minto v. Jones, [2008] O.J. No. 3687 (S.C.). …
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