Johnson V Agnew 1980 AC 367

By faiznuralia06 | Updated: Jan. 2, 2021, 3:22 p.m.

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Case : Johnson v Angnew (1980) AC 367
CMA443 LEGAL STUDIES IN CONSTRUCTION
Group AP2462A : The Gadis
Meet the Gadis
Faizatul
Hidayah
Alia
Farahim

Case : Johnson v Agnew (1980) AC 367
Hi, Michael 
Johnson here!
Hello, i'm Mrs Adeline Agnew
The FACT?
What is
Johnson v Agnew
FACT OF THE CASE
Hi sir. I'm interested to buy your land.
That's great! How much can you offer me?
How about £117,000?
Nice! I agree with the deal.
On 1 November 1973
When everything was ready in December and January 1974, she did nothing. Meanwhile, the Johnsons were in financial trouble. They were in arrears on mortgage repayments.
In March 1974 they have specific performance of the contract, and won summary judgment in June, but the order was not drawn up until November, and so the Johnsons left it, because in the meantime, the mortgagees had won orders for possession and sale of the property.
The Johnsons' lawyer advised there was no point enforcing against Agnew. The mortgagees only realised £48,000, not even enough to discharge the Johnsons' mortgage debts.
It's pointless!
The Johnsons' creditors filed them into bankruptcy. This was adjourned, and the Johnsons' brought a claim against Agnew seeking the purchase price (less deposit and the £48,000 realised on sale by the mortgagees), and a declaration that the contract was repudiated and to keep the deposit price.
The rule?
What is
Johnson v Agnew
RULE OF THE CASE
If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need to be performed.
SECTION 63 CONTRACT ACT 1950
Application Law
johnson v agnew
Applying to the case Johnson v Agnew 1980, the case is about Agnew argued that Johnson had elected to enforce the contract by the way of specific performance.

The court did not have the power to discharge the order specific performance and award damage in lies.

Agnew failed to fulfill contractual obligations and therefore, the measure of damages should be the difference between the agreed purchase price and the price obtained by the mortgage. 
APPLICATION LAW
Breach of the contract is a legal cause of action in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract.

If the party does not fulfil his contractual promise, or has given information to the other party that he will not perform his duty as mentioned in the contract or if his action and conduct he seems to be unable to perform the contract, he is said to breach the contract. 
CONCLUSION
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Johnson V Agnew 1980 AC 367

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