Bavulo Pty Limited v Zhang Property Pty Limited

Case

[2024] NSWSC 879

19 July 2024


Details
AGLC Case Decision Date
Bavulo Pty Limited v Zhang Property Pty Limited [2024] NSWSC 879 [2024] NSWSC 879 19 July 2024

CaseChat Overview and Summary

Bavulo Pty Limited (the purchaser) sought a declaration that the sale of a property to Zhang Property Pty Limited (the vendor) be declared void. The purchaser argued that the vendor failed to serve a notice to complete, and therefore the sale should be void. The vendor claimed that the purchaser had not completed the sale in accordance with the contract, and that the vendor had the right to terminate the contract and retain the deposit. The dispute was heard in the Supreme Court of New South Wales.

The court needed to determine whether the vendor's failure to serve a notice to complete prevented the issuance of a valid notice, and whether the vendor's termination of the contract was valid. The court also needed to consider whether the vendor had breached the contract by failing to provide documentation and by not notifying the purchaser of a breach of lease.

The court found that the vendor's failure to serve a notice to complete prevented the issuance of a valid notice, and therefore the purchaser was not in default. The court also found that the vendor's termination of the contract was invalid because it was based on the purchaser's alleged failure to comply with a notice to complete that was never issued. The court further found that the vendor had breached the contract by failing to provide documentation and by not notifying the purchaser of a breach of lease. However, the court found that these breaches did not entitle the vendor to terminate the contract and retain the deposit. The court ordered the vendor to return the deposit to the purchaser.

The court ordered that the contract for sale of the property be declared void and that the vendor return the deposit to the purchaser. The court also ordered that the vendor pay the purchaser's costs of the proceeding.
Details

Areas of Law

  • Property Law

Legal Concepts

  • Contract Formation

  • Breach of Contract

  • Specific Performance

Actions
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Cases Cited

14

Statutory Material Cited

1

Carrapetta v Rado [2012] NSWCA 202