Dunning v Callaghan; Dunning v Callaghan

Dunning v Callaghan involved two separate but related cases before the Supreme Court of New South Wales. The appellant, Dunning, sought to rescind the contracts of sale for two properties located in Sydney. The respondents, Callaghan, sought specific performance of the contracts. The dispute arose out of a condition in the contracts that allowed either party to rescind if the strata plan was not registered within 12 months from the date of the contract. Dunning claimed that the contracts were properly rescinded because the strata plans were not registered within the specified time period. Callaghan argued that the contracts were still valid and enforceable and that Dunning had no right to rescind.

The court was required to determine whether the contracts were validly rescinded and, if so, whether the respondents were entitled to specific performance. The central issue was whether a letter from the vendors' architect, stating that time for registration of the strata plans could be extended, constituted a determination under the contracts. If it did, then the contracts were not rescinded and the respondents were entitled to specific performance.

The court held that the letter from the architect was not a determination under the contracts and therefore the contracts were validly rescinded. The court found that the letter did not contain the essential elements of a determination, namely that it was made in writing and signed by the architect. The court also found that the architect did not have the power to make a determination on his own but needed to be directed by the vendors. The court concluded that the contracts were rescinded and the respondents were not entitled to specific performance. The orders made by the court were that the contracts were rescinded and that the respondents' claims for specific performance were dismissed.