Cole v Raykir Holdings Pty Ltd [2019] NSWSC 1017

Supreme Court New South Wales

Medium Neutral Citation: Cole v Raykir Holdings Pty Ltd [2019] NSWSC 1017 Hearing dates: 29 July 2019 Date of orders: 13 August 2019 Decision date: 13 August 2019 Jurisdiction: Equity Before: Darke J Decision: Plaintiffs held to have validly terminated contract for sale of land, and to be entitled to recover damages from defendants. Catchwords: LAND LAW – contract for the sale of land – termination for breach of an essential term or for repudiation – where vendors issued notice to complete giving the purchaser 14 days to complete – where parties agreed to extend the time for completion under the notice to complete – where purchaser intimated it could not complete by extended date for completion – where purchaser failed to complete by extended date for completion – vendors terminated contract – whether notice to complete effective to make time of the essence – whether extension effective to make the newly appointed time of the essence – time for completion under extended date held to be of the essence – purchaser held to have breached contract in an essential respect and to have repudiated the contract – contract validly terminated by vendors

LAND LAW – contract for the sale of land – deposit – penalty doctrine – deposit payable by two instalments each of 5% of the purchase price – where first instalment paid on contract date – where second instalment payable "on or prior to the completion" of the contract – whether second instalment is in the nature of a deposit – held that second instalment not in the nature of a deposit

GUARANTEE AND INDEMNITY – guarantee – construction – guarantee of the purchaser's obligations under contract for the sale of land – guarantor agrees to be personally liable for performance of purchaser's obligations "under this Contract" – where purchaser liable under liquidated damages clause upon termination of contract – whether obligation under liquidated damages clause is an obligation "under this Contract" – guarantor held to be liable for amount of liquidated damages Legislation Cited: Civil Procedure Act 2005 (NSW), s 100 Conveyancing Act 1919 (NSW), s 55 Uniform Civil Procedure Rules 2005 (NSW), r 14.11 Cases Cited: Ankar Pty Ltd v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549 Ashdown v Kirk [1999] 2 Qd R 1 Associated Beauty Aids Pty Ltd v Federal Commissioner of Taxation (1965) 113 CLR 662 Cooper v Ungar (1958) 100 CLR 510 Cratchley v Bloom (1984) 3 BPR 97,206 Foran v Wight (1989) 168 CLR 385 Forster v Jododex Australia Pty Ltd (1972) 127 CLR 421 Galafassi v Kelly (2014) 87 NSWLR 119; [2014] NSWCA 190 Iannello v Sharpe (2007) 69 NSWLR 452; [2007] NSWCA 61 Kazacos v Shuangling International Development Pty Ltd (2016) 18 BPR 36,353; [2016] NSWSC 1504 Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115; [2007] HCA 61 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623 Luu v Sovereign Developments Pty Ltd (2006) 12 BPR 98,203; [2006] NSWCA 40 Manufacturers House Pty Ltd v Ashington No 147 Pty Ltd (2005) 12 BPR 98,224; [2005] NSWSC 767 McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457 Mehmet v Benson (1965) 113 CLR 295 Peter Turnbull and Company Pty Ltd v Mundus Trading Company (Australasia) Pty Ltd (1954) 90 CLR 235 Petrie v Dwyer (1954) 91 CLR 99 Rona v Shimden Pty Ltd (2005) 12 BPR 23,287; [2005] NSWSC 818 Sunbird Plaza Pty Ltd v Maloney (1988) 166 CLR 245 Sydney Developments Pty Ltd v Perry Properties Pty Ltd (2016) 18 BPR 35,905; [2016] NSWSC 515 Tabbouch v Devlin (2008) 14 BPR 98338; [2008] NSWSC 600 Tropical Traders Ltd v Goonan (1964) 111 CLR 41 Velik v Steingold [2013] NSWCA 303 Category: Principal judgment Parties: Mitchell Edward Cole (First Plaintiff) Katherine Clare Cole (Second Plaintiff) Raykir Holdings Pty Ltd (First Defendant) Ekaterina Charonova (Second Defendant) Representation: Counsel: Mr T Flaherty (Plaintiffs) Mr P Cutler (Defendants)