Green v Cutmore

In *Green v Cutmore*, the New South Wales Court of Appeal considered a dispute between a vendor and a purchaser concerning a contract for the sale of land. The purchaser sought to terminate the contract, alleging a breach by the vendor.

The primary legal issue before the Court of Appeal was whether the vendor had breached a condition precedent to the contract, thereby entitling the purchaser to terminate. Specifically, the court had to determine if the vendor had taken all reasonable steps to obtain a necessary planning approval within the stipulated timeframe.

The Court of Appeal found that the vendor had indeed failed to take all reasonable steps to obtain the planning approval. Applying the principles of contract law, the court held that a failure to satisfy a condition precedent, where that failure is due to the party's own lack of reasonable effort, constitutes a breach of contract. The court emphasised that the obligation to take reasonable steps was an active one, requiring more than mere passive waiting.

Consequently, the Court of Appeal dismissed the vendor's appeal and affirmed the primary judge's decision, which had found in favour of the purchaser and allowed the termination of the contract.