A Collection is a selection of features, articles, comments and opinions on any given theme or topic. It allows you to stay up‑to‑date with what interests you most.
Login here to access your saved articles and followed authors.
We have sent you an email so you can reset your password.
Sorry, we had a problem.
Tags related to this article
Published 17 January 2023
Coronation Bank Holiday 2023 – Commercial Property Contracts
An additional bank holiday has been proclaimed for the UK in celebration of the coronation of His Majesty King Charles III.
The coronation itself will take place on Saturday 6 May 2023 and the additional bank holiday will fall on Monday 8 May 2023.
While this news will be welcomed, before making any celebratory plans it would be wise to check any previously exchanged property contracts to see whether completion dates fall on this new bank holiday. You should also ensure that any new contracts do not inadvertently oblige any party to complete on 8 May 2023.
What if contractual completion is due on 8 May 2023?
Commercial property contracts usually incorporate the Standard Commercial Property Conditions (Third Edition – 2018 revision) (Conditions). Condition 9.7 requires completion day payments are made by electronic means in same day cleared funds. Banks will obviously be closed on the bank holiday so it will be impossible to make CHAPS payments and comply with this Condition (unless, of course, it has been varied).
Who bears the risk?
Where one party is obliged to make a payment to another party on completion, the risk is likely borne by the purchaser. For example, a purchaser may fail to complete on 8 May 2023 as the balance of the purchase price cannot be transferred to the seller’s solicitor on 8 May 2023. Here the purchaser is arguably liable for interest and subject to notice to complete provisions pursuant to the Conditions.
However, some commentators suggest that in these circumstances, a Court is likely to imply terms into the contract which would defer completion to the next working day, relying on the provisions of the Banking and Financial Dealings Act 1971 as referred to below, as it seems unjust for a purchaser to be in breach of contract for reasons outside of its control.
In advance of the bank holiday to mark the funeral of HM Queen Elizabeth II on 19 September 2022, the Law Society recommended being pragmatic and collaborative. The same may well apply to 8 May 2023. Sensible solutions should be sought between the affected parties.
This might include some or a combination of the following:
+44(0)161 934 3150
Gwyneth Barton, Guy Knight
Stephanie Bagshaw, Clare Hartley
Stephanie Bagshaw, Fiona Gill
Andrew Morgan, Joe Whimpenny
Andrew Morgan, Mereaira Jones
Daniel Kendall, Sarah Pickering
Stephanie Bagshaw, Matthew Stokes
Martha Grekos, Isaac Jong