Gardner v Wallace

In *Gardner v Wallace*, the Supreme Court of Victoria considered a dispute between a vendor and a purchaser concerning the sale of a property. The purchaser sought to terminate the contract of sale, alleging that the vendor had breached a condition precedent. The vendor, in turn, sought to enforce the contract.

The central legal issue before the Court was whether the vendor had fulfilled a condition precedent requiring them to obtain a satisfactory building permit for certain renovations to the property by a specified date. The Court had to determine the precise meaning and effect of this condition, and whether the vendor's actions constituted substantial compliance or a material breach.

The Court reasoned that the condition precedent was a condition that had to be strictly performed. It found that the building permit obtained by the vendor was not satisfactory as it did not permit the full scope of renovations contemplated by the parties. Consequently, the vendor had failed to satisfy the condition precedent by the stipulated date, entitling the purchaser to terminate the contract. The Court applied principles of contract law regarding conditions precedent and the consequences of their non-fulfilment.

The Court ordered that the contract of sale be terminated and that the vendor repay the deposit to the purchaser.