Glenmason Pty Ltd v Kramer

Glenmason Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's claim for damages for breach of contract against the respondents, Mr. and Mrs. Kramer, arising from the sale of a property. The appellant alleged that the respondents had failed to deliver vacant possession of the property as required by the contract of sale.

The primary legal issue before the Court of Appeal was whether the respondents had breached the contract by failing to give vacant possession, and if so, what damages were recoverable by the appellant. This involved determining the meaning of "vacant possession" in the context of the sale agreement and assessing whether the presence of the respondents' furniture and personal effects in the property at settlement constituted a failure to deliver vacant possession.

The Court of Appeal, in its reasoning, considered the established legal principles regarding vacant possession. It held that "vacant possession" means that the purchaser is entitled to enter into the property and take physical possession of it, free from any encumbrances or the presence of the vendor or their belongings. The Court found that the respondents' failure to remove their furniture and personal effects from the property at the settlement date meant that they had not delivered vacant possession as contractually obliged. Consequently, the appellant was entitled to damages for the breach.

The Court of Appeal allowed the appeal, setting aside the Supreme Court's order and remitting the matter to the Supreme Court for the assessment of damages.