Cawood v Infraworth Pty Ltd

This case concerns an application for special leave to appeal to the High Court of Australia. The applicant, Cawood, sought to appeal a decision of the Full Court of Queensland concerning a contract for the sale of land. The respondent, Infraworth Pty Ltd, had refused to complete the purchase and purported to rescind the contract on the grounds that requests to withdraw two caveats had not been registered by the settlement date, despite the parties having extended the settlement by one day. The contract, a standard Real Estate Institute of Queensland form, stipulated that time was of the essence.

The primary legal issues before the High Court were: firstly, when the withdrawal of a caveat takes effect, and whether it operates by its own force or requires registration; and secondly, whether, notwithstanding the contractual provisions, the purchaser was entitled to insist on the registration of the caveat withdrawals at the settlement date. The applicant argued that if a withdrawal of a caveat operates by its own force upon lodgement, then the purchaser was not entitled to demand registration before settlement, as the caveat would have ceased to be in force.

The Full Court of Queensland, by a majority, had held that the transfer tendered at settlement was capable of immediate registration, contrary to the decision of the judge at first instance. However, the majority also held that the purchaser was nevertheless entitled to insist on the registration of the caveat withdrawals at the settlement date. The applicant’s submission was that the withdrawal of a caveat takes effect upon lodgement, rendering the caveat no longer in force, and that the purchaser's insistence on registration was therefore unwarranted. The resolution of this issue depended on whether a caveat is considered an instrument under the Torrens system and how it is removed or withdrawn.

The applicant sought special leave to appeal on the basis that these questions of law were of general public importance, particularly in Queensland. The outcome of the application for special leave to appeal was not detailed in the provided text.