C & P Syndicate Pty Ltd v Reddy

The case of C & P Syndicate Pty Ltd v Reddy revolves around a dispute between the plaintiff and the defendant over the enforcement of a put option and the subsequent repudiation of the contract by the defendant. The plaintiff sought specific performance and damages, while the defendant argued against the enforceability of the put option and the applicability of specific performance. The Supreme Court of New South Wales was tasked with determining whether the defendant had properly exercised the put option and whether the plaintiff was entitled to specific performance or common law damages.

The primary legal issues before the court were whether the letter sent by the defendant's solicitor to the plaintiff's solicitor was a valid exercise of the put option, and if the plaintiff was entitled to specific performance or damages in lieu of specific performance following the defendant's repudiation. The court needed to interpret the terms of the Option Deed, consider the effect of the defendant's repudiation, and determine the appropriate remedy for the plaintiff.

The court found that the defendant had not validly exercised the put option, as the letter did not comply with the terms of the Option Deed. The court also concluded that the plaintiff was entitled to damages rather than specific performance because the defendant had repudiated the contract, and the plaintiff had elected to treat the contract as at an end. The court held that specific performance was not available to the plaintiff as it would have been an exceptional remedy in aid of an accrued right. The measure of damages was determined to be the difference between the contract price and the market value of the land at the time the contract was lost, with an allowance for any deposit paid. The court also awarded pre-judgment interest to the plaintiff.

In conclusion, the court ruled that the defendant had not properly exercised the put option, and the plaintiff was entitled to common law damages for the breach of contract. The court dismissed the plaintiff's claim for specific performance and ordered the defendant to pay the plaintiff damages and pre-judgment interest.