Chandos Developments Pty Ltd v Mulkearns & Anor [2008] NSWCA 62

New South Wales Court of Appeal

CITATION: Chandos Developments Pty Ltd v Mulkearns & Anor [2008] NSWCA 62

HEARING DATE(S): 25 February 2008

JUDGMENT DATE: 11 April 2008

JUDGMENT OF: Beazley JA at 1; Giles JA at 2; McColl JA at 125

DECISION: Appeal and cross-appeal each dismissed with costs.

CATCHWORDS: Vendor and purchaser - sale subject to tenancy - vendor obliged under tenancy agreement to maintain roof - vendor obliged under sale agreement to comply with obligation to tenant to the extent to be complied with prior to completion - roof needed replacing - whether within vendor's obligation to tenant - whether vendor could give notice to complete when roof not replaced - whether vendor could terminate for failure by purchaser to complete although rejecting that had to replace roof - construction of obligation under sale agreement - replacement within vendor's obligations - but vendor not in breach and could give notice to complete - vendor's obligation under sale agreement not essential obligation - vendor could terminate - provisions in sale agreement concerning retention of a licence fee in the event of termination - on construction of provisions, only as security for vendor's loss - purchaser could recover most of licence fee.

CATEGORY: Principal judgment

Alexus Pty Ltd v Pont Holdings Ltd (2000) 10 BPR 97848; Bahr v Nicolay (No 2) (1988) 164 CLR 604; Brew Bros Ltd v Snax (Ross) Ltd (1970) 1 QB 612; Dunlop Pneumatic Tyre Co Ltd v New Garage & Motor Co Ltd (1915) AC 79; Foran v Wight (1989) 168 CLR 385; Foster v Anderson (1908) 16 OLE 565; Glasshouse Investments Pty Ltd v MPJ Holdings Pty Ltd [2005] NSWSC 456; Golding v Vella (2001) 10 BPR 97903; Gustin v Taajamba Pty Ltd (1988) 4 BPR 97274; Halkidis v Bugeia (1974) 1 NSWLR 423; Highfern Pty Ltd v Sibbles (1987) 2 QdR 667; Lindsay v Federal Commissioner of Taxation (1961) 106 CLR 377; CASES CITED: Lister v Lane (1893) 2 QB 212; Lurcott v Wakeley (1911) 1 KB 905; Maxsujur Pty Ltd v Asimus (1982) NSWLR 96; McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457; McNally v Waitzer (1981) 1 NSWLR 294; Mehmet v Benson (1965) 113 CLR 295; Neeta (Epping) Pty Ltd v Phillips (1974) 131 CLR 286; PC Developments Pty Ltd v Revell (1991) 22 NSWLR 615; Ping v Pearce Paradise Pty Ltd (1982) 2 BPR 97125; Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589; Prosper Homes Ltd v Hambros Bank Executor & Trustee Co Ltd (1979) 39 P & CR 395; Ray v Davies; Dyster v Randall (1926) Ch 932; Roadshow Entertainment Pty Ltd v (ACN 053 006 269) Pty Ltd (1997) 42 NSWLR 463; Torrens v Walker (1906) 2 Ch 166.