Bennett & Anor v Facer

The case of Bennett & Anor v Facer concerned a dispute between the appellants, Bennett and another, and the respondent, Facer, regarding a contract for the sale of land. The High Court of Australia was tasked with determining the rights and obligations of the parties under this agreement.

The central legal issues before the High Court were whether the contract for sale was void for uncertainty, and if not, whether the respondent had breached the contract by failing to complete the sale. Specifically, the court had to consider the interpretation of a clause within the contract that stipulated the sale was subject to the purchaser obtaining finance on terms satisfactory to the purchaser.

The High Court held that the clause requiring the purchaser to obtain finance on terms satisfactory to the purchaser did not render the contract void for uncertainty. Their Honours reasoned that the purchaser was bound to act honestly and reasonably in seeking finance, and that the "satisfactory" nature of the terms was to be judged by an objective standard of reasonableness, not merely subjective whim. As the respondent had failed to demonstrate that he had genuinely sought finance in accordance with this standard, the court found that he had breached the contract.

Consequently, the High Court allowed the appeal, finding that the contract was valid and that the respondent was in breach.