ATAP Pty Ltd v Dorotich

ATAP Pty Ltd (the applicant) sought an order for specific performance of a contract for the sale of land against Dorotich (the respondent). The dispute concerned whether the respondent had validly terminated the contract. The matter was heard in the Supreme Court of Western Australia.

The primary legal issue before the Court was whether the respondent had validly exercised its right to terminate the contract for the applicant's alleged breach of a condition precedent, specifically the failure to obtain finance approval by the stipulated date. The Court also considered whether the applicant had waived its right to rely on the condition precedent or was estopped from doing so.

The Court found that the applicant had not obtained finance approval by the contractual date. However, it determined that the respondent had waived its right to rely on the time stipulation for finance approval by its conduct, which included continuing to engage with the applicant regarding the sale after the expiry of the finance date without asserting a right to terminate. The Court applied the principles of waiver, noting that a party can waive a condition for their benefit, and that such waiver can be inferred from conduct. The Court also considered the doctrine of estoppel, finding that the respondent's conduct had led the applicant to believe that the contract would proceed despite the missed finance deadline, and that the applicant had acted to its detriment in reliance on this belief.

The Court ordered specific performance of the contract, requiring the respondent to complete the sale of the land to the applicant.