Chappuis v Filo

In *Chappuis v Filo* [1990] NSWCA 38, the New South Wales Court of Appeal considered a dispute between the appellant, Chappuis, and the respondent, Filo, concerning the interpretation and enforceability of a contract for the sale of land. The primary issue before the court was whether the contract, which contained a clause requiring the purchaser to obtain finance, had been validly terminated by the vendor.

The court was required to determine whether the vendor was entitled to terminate the contract on the grounds that the purchaser had failed to obtain finance within the stipulated timeframe. This involved an examination of the purchaser's obligations under the finance clause and whether they had taken all reasonable steps to secure the necessary funding. The court also considered whether the vendor had waived their right to rely on the time stipulation for finance approval.

The Court of Appeal held that the purchaser had not taken all reasonable steps to obtain finance, and therefore the vendor was entitled to terminate the contract. The court applied the principles of contract law, emphasizing the importance of fulfilling conditions precedent within the agreed timeframe. It was found that the purchaser's efforts were insufficient and that the vendor had not acted in a way that would constitute a waiver of their contractual rights. The appeal was dismissed.