Alexakis v Wan

The parties to this dispute were Alexakis (the vendor) and Wan (the purchaser), concerning a contract for the sale of land. The primary issue before the Court of Appeal of New South Wales was the construction of a standard form contract, specifically relating to the payment of a deposit.

The court was required to determine whether the deadline for the payment of the second instalment of the deposit, which fell on a non-business day, was extended to the next business day by clause 21.5 of the contract. Additionally, the court had to consider whether an exception within clause 21.5, relating to clauses 2 and 3.2, operated to prevent this extension. Clause 2.3 of the contract had stipulated that the time for payment of the second instalment was "essential".

The court reasoned that clause 21.5, which generally provided for the extension of time for performance to the next business day when a deadline fell on a weekend or public holiday, was applicable. It found that the exception in clause 21.5, which excluded its operation "in the case of clauses 2 and 3.2", did not apply to clause 2.3. Clause 2.3, while making time "essential", did not fall within the specific exclusions of clauses 2 or 3.2. Therefore, the deadline for the payment of the second deposit instalment was extended to the next business day.

The appeal was dismissed with costs.