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The 'Peak' or 'Prevention' Principle derives from the decision in Peak Construction (Liverpool) Ltd v McKinny Foundations Limited (1971) BLR 111. Where a party to a contract has been prevented from fulfilling its contractual obligations as a result of the conduct of the other party then the preventing party cannot insist upon strict contractual times for performance. Where the principle applies, time in the contract is set at large and is replaced by whatever is reasonable in the circumstances. The principle has important limitations. See further Gaymark Investments Pty Ltd v. Walter Construction Group Limited (1999) 16 BCL 449; Turner Corporation Limited v. Co-Ordinated Industries Pty Ltd (1994) BCL 202 at 212; Peninsula Balmain Pty Ltd v. Abigroup Contractors (NSW CA) (2002) 18 BCL 322; and Spiers Earthworks Pty Ltd v Landtec Projects Corp Pty Ltd (No 2) [2012] WASCA 53. |
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