Fairmede Pty Ltd v Von Pein

Fairmede Pty Ltd sought to enforce specific performance of contracts for the sale of land against Von Pein, claiming the contracts were validly entered into. The defendants argued the contracts were terminated due to the plaintiffs' failure to comply with a special condition by the stipulated due date, which was of the essence. The defendants' agent had made representations to the plaintiffs that the defendants would accept compliance with the special condition and grant extensions of time if requested. The plaintiffs claimed the agent lacked authority to make such representations. The court had to determine if the agent had the authority to make the representations and if the contracts were validly terminated.

The court examined the contracts and found that time was indeed of the essence regarding compliance with the special condition. The court assessed whether the defendants' agent had actual or apparent authority to make the representations. The court concluded that the agent did not have the authority to make such representations and that the contracts were validly terminated due to the plaintiffs' failure to meet the special condition by the due date. The court determined that the defendants were not estopped from enforcing the termination due to the agent's representations.

The court dismissed the plaintiffs' claim for specific performance and declared that each of the contracts was validly terminated by the defendants due to the breach of the special condition. The court ordered that the deposits paid by the plaintiffs be forfeited to the defendants. The court's decision focused on the strict adherence to the terms of the contracts and the lack of authority of the defendants' agent to alter those terms.