Fairborne Pty Ltd v Strata Store Noosa Pty Ltd

Fairborne Pty Ltd sought specific performance of a contract for the sale of a plot of land against Strata Store Noosa Pty Ltd. The dispute also involved the directors of Strata Store Noosa Pty Ltd, who had executed a guarantee of the purchaser's obligations under the contract. Fairborne claimed that Strata Store Noosa Pty Ltd had wrongfully terminated the contract and that it was ready, willing and able to perform the contract. The court was required to decide whether Fairborne had complied with the special conditions of the contract, whether Strata Store Noosa Pty Ltd had valid grounds to terminate the contract, and whether damages would be an adequate remedy for Fairborne.

The court held that Fairborne had not failed to comply with the special condition requiring the purchaser to apply to the local authority for reconfiguration of the existing lot and an adjoining lot. The court also found that Strata Store Noosa Pty Ltd had no valid grounds to terminate the contract and that damages would not be an adequate remedy for Fairborne. The court held that requiring Strata Store Noosa Pty Ltd to perform the contract would not impose undue hardship on it.

The court ordered that Strata Store Noosa Pty Ltd must specifically perform the contract of sale. The court dismissed Fairborne's application against the guarantors of the contract, holding that any claim for relief against them was premature. The court directed the parties to confer and advise on an appropriate form of order and on costs.