Legal Definitions - chancer

The term chancer refers to the act of a court adjusting or modifying a legal outcome, such as a penalty or forfeiture, based on principles of fairness and justice, rather than strictly applying the letter of the law. This practice typically arises in situations where a court might not have formal "equity jurisdiction" (the power to apply principles of fairness directly) but still seeks to prevent an unduly harsh or unjust result that would arise from a rigid application of legal rules.

• Example 1: Construction Contract Penalty

  Imagine a small construction company that has a contract to build an addition to a house. The contract includes a strict penalty clause, stating that for every day the project runs over schedule, the company must pay a significant fine. One month before completion, an unexpected and severe regional storm makes construction work impossible for three days, a circumstance entirely beyond the company's control. As a result, the project finishes three days late. The homeowner suffered no actual financial loss from this minor delay.

  In this scenario, a court, even without formal equity powers, might chancer the penalty clause. Instead of enforcing the full daily penalty for those three days, the court could reduce or waive it. This adjustment would be based on the principle of fairness, recognizing the injustice of penalizing the company for an act of nature that caused no harm to the client, rather than strictly adhering to the contract's literal terms.

• Example 2: Commercial Lease Forfeiture

  Consider a small bakery that leases its commercial space. The lease agreement contains a clause stating that if the rent payment is even one day late, the lease is immediately forfeited, allowing the landlord to evict the tenant. One month, due to an unforeseen technical glitch with the bank's online payment system, the bakery's rent payment is processed and received by the landlord one day late. The bakery has a perfect payment history for the past five years and immediately rectifies the error once discovered.

  A court might chancer the forfeiture clause in this situation. Instead of allowing the landlord to immediately evict the bakery for a minor, rectifiable, and non-prejudicial delay, the court could rule that the lease should not be forfeited. This adjustment prevents an extremely harsh outcome (the loss of the business's premises) that would result from a rigid application of the lease terms, prioritizing fairness given the tenant's history and the nature of the delay.