Avenue (WA) Pty Ltd v Plazaline Pty Ltd

The case involved Avenue (WA) Pty Ltd as the purchaser and Plazaline Pty Ltd as the vendor of a property. The dispute centred around the validity of the vendor's purported termination of a contract for the sale of land, which was conditional on the approval of a third party. The vendor terminated the contract because the conditions of approval were not acceptable to them. The purchaser sought specific performance of the contract, arguing that the vendor was obligated to take reasonable steps to fulfil the contract. The vendor argued that the purchaser was not ready and willing to perform the contract.

The primary legal issue was whether the vendor had a valid basis to terminate the contract and whether the purchaser was obligated to take reasonable steps to fulfil the contract. Additionally, the court had to determine if the purchaser was ready and willing to perform the contract, which is a prerequisite for specific performance. The court examined the terms of the contract, the obligations of the parties, and the circumstances under which the vendor purported to terminate the contract.

The court found that the vendor had no valid basis to terminate the contract as the conditions for approval were not absolute and the vendor had an obligation to take reasonable steps to fulfil the contract. The court held that the purchaser was ready and willing to perform the contract and that the vendor's refusal to take reasonable steps to fulfil the contract constituted a breach. Consequently, the court granted specific performance, ordering the vendor to complete the sale of the property as per the contract terms.

The final orders included the specific performance of the contract, with the vendor required to complete the sale of the property to the purchaser. The court also ordered the vendor to pay the purchaser's costs associated with the proceedings.