Executive Builders & Developers Pty Ltd v Roddam

Executive Builders & Developers Pty Ltd brought an action against Roddam regarding the sale of land and a deed of compromise. The dispute centred on whether a rescission of the contracts was effective, specifically if the party rescinding was required to refund the purchase money. The matter was heard in the Supreme Court of Queensland. The primary legal issues involved the interpretation of the special conditions in the contracts, the obligations of the parties to register the plan of subdivision, and the effect of the rescission if valid.

The court examined whether the obligation to register the plan of subdivision was a condition precedent or merely a condition subsequent. It was determined that the obligation was to do whatever was reasonably necessary to register the plan, indicating it was a condition subsequent. The court also considered the balance of convenience in relation to an interlocutory order, noting that while construction of contracts was permissible during such applications, it was generally not appropriate where the construction might be influenced by the factual context of the case. The court held that there was an arguable case that the rescission was ineffective and that the obligation to refund the purchase money would depend on the outcome of the case.

The court found that the onus of proof lay with the party seeking to assert the rescission was ineffective. Given the arguments presented, the court concluded that there was a sufficient basis to proceed with the case, leaving the ultimate determination of the rescission's validity to be resolved at trial. Consequently, the court declined to make a final determination on the refund of the purchase money at the interlocutory stage. The final orders included allowing the plaintiff's application for an interlocutory injunction to prevent the defendant from proceeding with the rescission, pending further evidence and argument at the full hearing.