Bedek v Brown

The case of *Bedek v Brown* concerned a dispute between the parties regarding the interpretation and enforceability of a contract for the sale of land. The matter came before the High Court of Australia.

The central legal issue before the High Court was whether the contract for sale, which contained a clause requiring the purchaser to obtain finance by a specified date, was void for uncertainty or whether it imposed an enforceable obligation on the purchaser to take reasonable steps to obtain finance. The court also considered the implications of the purchaser's failure to obtain finance by the stipulated date.

The High Court, in a joint judgment delivered by Gaudron and McHugh JJ, held that the clause did not render the contract void for uncertainty. Their Honours reasoned that where a contract makes a party's obligation conditional upon the occurrence of an event, and that event is within the control of that party, the law implies a term that the party will take reasonable steps to procure the occurrence of that event. In this instance, the obligation to obtain finance was within the purchaser's control, and therefore, the purchaser was obliged to make reasonable efforts to secure the necessary funding. The failure to do so meant the condition precedent to settlement was not satisfied, and the contract could be terminated.

The High Court found that the purchaser had not taken reasonable steps to obtain finance and, accordingly, the vendor was entitled to terminate the contract.