Burkinshaw v Baines

In *Burkinshaw v Baines* [1994] NSWCA 35, the New South Wales Court of Appeal considered a dispute between a vendor and a purchaser concerning the sale of a property. The purchaser sought to terminate the contract of sale, alleging a breach by the vendor.

The central legal issue before the Court of Appeal was whether the vendor had breached a condition precedent to the contract, thereby entitling the purchaser to terminate. Specifically, the court had to determine if the vendor had taken all reasonable steps to obtain a necessary approval within the stipulated timeframe.

The Court of Appeal found that the vendor had indeed failed to take all reasonable steps to obtain the required approval. Applying the principles of contract law, the court held that a party must demonstrate genuine and diligent efforts to fulfil a condition precedent. The vendor's inaction and lack of proactive engagement with the approval process were deemed insufficient to satisfy this obligation. Consequently, the purchaser was entitled to terminate the contract.