Casa Maria Pty Limited v Trend Properties Pty Limited

In *Casa Maria Pty Limited v Trend Properties Pty Limited*, the New South Wales Court of Appeal considered a dispute between a vendor and a purchaser concerning the sale of a property. The purchaser, Casa Maria Pty Limited, sought to terminate the contract of sale, alleging that the vendor, Trend Properties Pty Limited, had failed to provide vacant possession as required by the contract.

The central legal issue before the Court of Appeal was whether the vendor had breached the contract by failing to deliver vacant possession of the property on the settlement date. This involved determining the meaning of "vacant possession" in the context of the contract and assessing whether the circumstances at settlement constituted a failure to provide it.

The Court of Appeal found that the vendor had indeed breached the contract. It reasoned that vacant possession requires the vendor to give up all possession and control of the property, leaving it free from any encumbrances or occupants. In this instance, the presence of a tenant, even if the lease was purportedly terminated, meant that the purchaser did not receive vacant possession. The Court applied the principle that a vendor must deliver the property free from the right of any other person to occupy it.

Consequently, the Court of Appeal dismissed the vendor's appeal and affirmed the primary judge's decision, which had found in favour of the purchaser and allowed the termination of the contract.