Hachem v Cimijotta

In *Hachem v Cimijotta* [1996] NSWCA 238, the New South Wales Court of Appeal considered an appeal concerning a dispute over a contract for the sale of a business. The appellant, Mr. Hachem, sought to appeal a decision of the primary judge that had found in favour of the respondent, Mr. Cimijotta. The core of the dispute revolved around whether the contract had been validly terminated and what remedies were available to the parties.

The Court of Appeal was required to determine whether the primary judge had erred in finding that the respondent had validly terminated the contract for the sale of the business. Specifically, the court had to consider whether the appellant had committed a repudiatory breach of the contract, thereby entitling the respondent to accept the repudiation and terminate the agreement. Further, the court had to assess the correctness of the primary judge's findings regarding the appellant's alleged breaches and the respondent's subsequent actions.

The Court of Appeal upheld the primary judge's decision. The court found that the appellant's conduct, particularly his failure to comply with essential terms of the contract relating to the transfer of the business and its assets, amounted to a repudiatory breach. The court reasoned that the appellant's actions demonstrated an intention no longer to be bound by the contract or to perform it in a manner substantially different from that which was required. Consequently, the respondent was entitled to accept this repudiation and terminate the contract. The court also affirmed the primary judge's assessment of damages.