Ghaleb v Lee

In *Ghaleb v Lee*, the New South Wales Court of Appeal 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 failed to provide vacant possession by the settlement date. The vendor contended that the purchaser's purported termination was invalid and that the purchaser had breached the contract.

The central legal issue before the Court of Appeal was whether the vendor's failure to give vacant possession by the settlement date constituted a repudiation of the contract, thereby entitling the purchaser to terminate. The Court also had to determine whether the purchaser's actions in attempting to terminate the contract were themselves a repudiation, which would have entitled the vendor to accept the termination and claim damages.

The Court of Appeal held that the vendor's failure to provide vacant possession on the settlement date was a breach of a condition of the contract, but not necessarily a repudiation. It was crucial to consider the vendor's conduct and intention. In this instance, the vendor had made genuine efforts to provide vacant possession, and the delay was not so significant as to indicate an intention to abandon the contract. Consequently, the purchaser's attempt to terminate the contract based on this breach was deemed to be an unjustified repudiation. The Court found that the purchaser had repudiated the contract, and the vendor was entitled to accept that repudiation.