Duncan v Mendes

In *Duncan v Mendes* [1998] NSWCA 278, the New South Wales Court of Appeal considered a dispute between a vendor and a purchaser concerning the sale of a property. The purchaser sought to terminate the contract of sale, alleging that the vendor had failed to comply with a condition precedent.

The central legal issue before the Court of Appeal was whether the vendor had validly exercised an option to extend the settlement date under the contract. This involved an interpretation of the contractual terms relating to the notification requirements for such an extension and whether the purchaser had been adequately informed of the vendor's intention to extend.

The Court of Appeal found that the vendor had not complied with the express terms of the contract regarding the notification of the extension. The contract stipulated a specific method of communication for exercising the option, which the vendor had failed to follow. Consequently, the vendor was not entitled to the extension, and the purchaser was therefore within their rights to terminate the contract. The Court applied principles of contractual interpretation, emphasizing the importance of adhering to the clear and unambiguous terms agreed upon by the parties.

The Court of Appeal dismissed the vendor's appeal, upholding the primary judge's decision that the contract had been validly terminated by the purchaser.