Hanave Pty Ltd v LFOT Pty Ltd (formerly Jagar Pty Ltd)

Hanave Pty Ltd sought a declaration from the court that it was entitled to terminate an agreement for the purchase of land. LFOT Pty Ltd, the seller, opposed the application. The dispute came before the Supreme Court of New South Wales. The central issue before the court was whether Hanave was entitled to terminate the agreement, and if so, whether this was an appropriate occasion to make a declaration to that effect.

The court considered whether Hanave had breached the agreement, and if so, whether such a breach was material. The court found that Hanave had indeed breached the agreement by failing to complete the purchase within the specified time. However, LFOT had also breached the agreement by failing to transfer the land within the stipulated period. The court determined that neither breach was material enough to entitle Hanave to terminate the agreement. The court found that the appropriate remedy for a breach of contract was not termination, but rather damages.

Consequently, the court dismissed Hanave's application for a declaration that it could terminate the agreement. The court ordered the parties to file and serve written submissions on the question of costs within 14 days of the decision. The court's decision highlighted the importance of strictly adhering to the terms of a contract and the limited circumstances in which termination is permissible.