Everest Project Developments Pty Ltd v Mendoza

Everest Project Developments Pty Ltd sued Mendoza over the sale of an apartment "off the plan" in an unregistered plan of subdivision. The dispute hinged on whether the contract of sale adhered to the requirements of the Sale of Land Act 1962 (Vic). Specifically, the court needed to determine if the contract met the criteria outlined in section 9AA(1)(a) of the Act and whether the "holding deposit" paid by the purchaser before the contract's conclusion qualified as "deposit moneys paid by the purchaser" under section 9AA(2). Additionally, the court examined whether Mendoza's failure to comply with section 9AA(2) entitled Mendoza to rescind the contract and if this right could be forfeited through election, waiver, or estoppel. The court also considered whether the contract complied with section 9AB of the Act, specifically the definition of "natural surface level of the land."

The court held that the contract of sale complied with the statutory requirements, notably under section 9AA(1)(a) and (2) of the Sale of Land Act 1962 (Vic). The court found that the "holding deposit" paid by Mendoza did not constitute a "deposit" for the purposes of section 9AA(2). Consequently, the purchaser's right to rescind the contract due to non-compliance with section 9AA(2) did not arise. Furthermore, the court determined that this right to rescind could be lost through election, waiver, or estoppel. Regarding the definition of "natural surface level of the land," the court concluded that the contract complied with the statutory definition under section 9AB of the Act. The court found in favour of Everest Project Developments Pty Ltd, affirming the validity of the contract of sale.

In light of the findings, the court dismissed Mendoza's claims and awarded costs to Everest Project Developments Pty Ltd. The court ruled that the contract of sale was valid and binding, with no grounds for rescission due to non-compliance with the statutory requirements. The court's decision underscored the importance of strict adherence to the provisions of the Sale of Land Act 1962 (Vic) when entering into contracts for the sale of land.