Hardy v Wardy

The case of Hardy v Wardy involved a dispute between a vendor and a purchaser regarding the sale of a lot in an unregistered subdivision plan. The purchaser, Hardy, had exercised an option to purchase the lot under a lease agreement, leading to the exchange of a contract of sale of land. The contract incorporated clause 28 of the 2000 Standard Conditions, which stipulated a six-month period for completing the subdivision. The vendor, Wardy, sought leave to rescind the contract after failing to complete the works required by Development Consent within the available timeframe. The central legal issue revolved around the interpretation of clause 28 and whether Wardy had fulfilled all reasonable obligations to register the subdivision plan within the stipulated six months.

The court examined the terms of clause 28 and assessed whether Wardy had taken all reasonable steps to have the subdivision plan registered within the specified period. Clause 28 provided that if the subdivision plan was not registered within six months, the purchaser could rescind the contract. However, the court also considered whether Wardy's failure to register the plan within the timeframe was due to reasons beyond his control. The court delved into relevant case law to understand the vendor's right to rescind when the time for registration of the plan was not achieved through the vendor's fault. The analysis focused on the extent to which Wardy had exercised due diligence and taken reasonable steps to complete the required works.

In determining the outcome, the court found that Wardy had not done everything reasonable to register the subdivision plan within the six-month period. The court ruled that Wardy's failure to achieve registration was not due to circumstances beyond his control and therefore, Wardy was not entitled to rescind the contract. The court refused Wardy's application for leave to rescind, holding that the purchaser was entitled to specific performance of the contract. The final orders mandated Wardy to complete the subdivision works and register the subdivision plan within a specified time frame, with the contract remaining enforceable for Hardy.