CS1 Evaline Pty Ltd v Ong

The dispute between CS1 Evaline Pty Ltd and Ong arose in the Federal Circuit Court of Australia, where the plaintiff sought specific performance of a contract for the sale of land. The plaintiff had entered into a contract to purchase land from the defendants but was unable to complete the purchase by the stipulated date. Following this, the defendants issued a notice to complete, which effectively affirmed the contract. The plaintiff remained ready and willing to complete at the date specified in the notice to complete, but the defendants did not perform, prompting the plaintiff's application for specific performance.

The court needed to determine whether the contract was affirmed by the notice to complete, and if the plaintiff remained ready and willing to perform its obligations under the contract. Furthermore, the court had to consider the defendants' failure to perform and whether the plaintiff's continued readiness and willingness to complete justified the granting of specific performance. The key legal issue was whether the contract could be enforced by specific performance given the circumstances surrounding the completion date and the subsequent actions of the parties.

The court found that the notice to complete issued by the defendants amounted to an affirmation of the contract. It held that the plaintiff had remained ready and willing to complete since the date specified in the notice to complete, and that the defendants' failure to perform justified the granting of specific performance. The court emphasised the importance of the readiness and willingness of the purchaser to complete and the unequivocal nature of the defendants' failure to perform. Consequently, the court ordered specific performance, requiring the defendants to complete the sale of the land to the plaintiff in accordance with the original contract terms.