De Sales v Ingrilli

The case of *De Sales v Ingrilli* concerned a dispute between a vendor and a purchaser of real property. The purchaser, Ms. Ingrilli, sought to terminate the contract of sale on the grounds that the vendor, Mr. De Sales, had failed to comply with a special condition requiring the vendor to obtain a certificate of occupancy for the property by a specified date. The matter proceeded to the High Court of Australia.

The central legal issue before the High Court was whether the purchaser was entitled to terminate the contract of sale due to the vendor's failure to obtain the certificate of occupancy by the stipulated date. This required the Court to consider the nature of the special condition, specifically whether it was a condition precedent to the purchaser's obligation to complete the purchase, and the consequences of its breach.

The High Court held that the special condition, which stipulated that the vendor "shall obtain a certificate of occupancy for the property by 30 June 2001", was a condition precedent to the purchaser's obligation to complete the sale. The Court reasoned that the language of the condition indicated a clear intention that the obtaining of the certificate was a prerequisite to the purchaser's liability to complete. As the vendor had failed to obtain the certificate by the specified date, the purchaser was entitled to terminate the contract. The Court affirmed the principle that where a contract contains a condition precedent, the party upon whom the obligation rests must fulfil that condition before the other party is bound.

The High Court dismissed the appeal and affirmed the decision of the Full Federal Court, finding that the purchaser was entitled to terminate the contract and recover her deposit.