Rivat Pty Ltd v B & N Elomar Engineering Pty Ltd [2007] NSWSC 638

Reported Decision : (2007) NSW Conv R 56-186

New South Wales Supreme Court

CITATION : Rivat Pty Ltd v B & N Elomar Engineering Pty Ltd [2007] NSWSC 638 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 19 – 21 June, 11 - 13 & 15 December 2006, 1 & 27 March 2007

JUDGMENT DATE : 21 June 2007

JURISDICTION : Equity

JUDGMENT OF : Hamilton J

DECISION : Contract for sale of land validly rescinded by vendor.

CATCHWORDS : CONTRACT [5] – General contractual principles – Offer and acceptance – Matters not giving rise to binding contract – Vagueness and uncertainty – Severability – Development application by reference to which one term of contract proceeded not annexed to contract or otherwise identified - CONTRACT [135] – Discharge, breach and defences to action for breach – Repudiation and non performance – Election and rescission – Generally – Rescission – Justification by circumstances not relied on at time of rescission - CONVEYANCING [4], [7] – Relationship of vendor and purchaser – Matters arising between contract and conveyance – Conditions of sale – Condition giving right of rescission – Other matters – Adequacy of notice of rescission – Unequivocal act terminating contract – Conditions precedent and subsequent – Consents of third persons – Local government approvals – Obligations of parties to obtain – Use of "best endeavours" or "all reasonable endeavours" – Whether necessary to undertake onerous obligations to obtain approval - INTERPRETATION [9] – General rules of construction of instruments – Where inconsistencies – Instruments partly written and partly printed – General principles.

LEGISLATION CITED : Trade Practices Act 1974 (Cth) s 52

Ashdown v Kirk [1999] 2 Qd R 1 Barton v Fitzgerald (1812) 15 East 530 at 541; 104 ER 944 Caltex Oil (Aust) Pty Limited v Alderton (1964) 81 WN (Pt 1) (NSW) 297 Chamber Colliery Company Limited v Twyerould [1915] 1 Ch 268n Concut Pty Ltd v Worrell (2000) 75 ALJR 312 Consolidated Credit Network v Illawarra Retirement Trust (No 2) [2005] NSWSC 1007 Dalsor Pty Limited v Roberts (2003) NSW ConvR 56-058 Foran v Wight (1989) 168 CLR 385 Glen Ayr Pastoral Pty Ltd v Terry Scott Pty Ltd (1974) 2 BPR 9215 Hardy v Wardy [2001] NSWSC 1141 Homburg Houtimport BV v Agrosin Ltd [2004] 1 AC 735 Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41 In Re Weston and Thomas's Contract [1907] 1 Ch 244 In the Goods of De Rosaz (1877) 2 PD 66 Joyce v Realm Marine Insurance Co (1872) LR 7 QB 580 Layman Pty Ltd v Murray [1973] 2 NSWLR 863 CASES CITED : Lewis v Barnett (1982) 264 EG 1079 North Shore Demolitions Pty Ltd v McKay [1978] 1 NZLR 454 Re Strand Music Hall Co Ltd (1865) 35 Beav 153; 55 ER 853 Rieger v Eaton & Sons Pty Ltd (1990) 6 BPR 13,770 Robertson v French (1803) 4 East 135; 102 ER 779 Shepherd v Felt and Textiles Co of Australia Ltd (1931) 45 CLR 359 State of New South Wales v Banabelle Electrical Pty Limited (2002) 54 NSWLR 503 Sunbird Plaza Pty Ltd v Maloney (1988) 166 CLR 245 Surf Road Nominees Pty Ltd v Tass James [2004] NSWSC 61 W R Clough & Sons Pty Ltd v Martyn [1978] 1 NZLR 313 Wardy v Hardy [2002] 11 BPR 20,227 Waters Lane Pty Ltd v Sweeney [2006] NSWSC 222 Butt, The Standard Contract for Sale of Land in New South Wales (2nd ed, 1998) [19.5], [28.4] Carter, Peden and Tolhurst's Contract Law in Australia (5th ed, 2007) [31-03] Halsbury's Laws of Australia vol 6, tit Contract [110-2260], [110-2300], vol 10, tit Deeds and Other Instruments [140-560], [140 570] Lewison, The Interpretation of Contracts (2004) [7.02] Odgers' Construction of Deeds and Statutes (5th ed, 1967) 76