Hassib v Haines

In *Hassib v Haines*, the New South Wales Court of Appeal considered a dispute between the plaintiff, Mr. Hassib, and the defendant, Mr. Haines, concerning a contract for the sale of a business. The central issue revolved around whether the defendant had validly terminated the contract due to the plaintiff's alleged failure to meet a condition precedent.

The court was required to determine whether the plaintiff had fulfilled a condition precedent within the contract, specifically the obtaining of finance on terms satisfactory to the plaintiff. The court also had to consider whether the defendant's purported termination of the contract was effective, given the plaintiff's actions and the surrounding circumstances.

The Court of Appeal found that the plaintiff had taken all reasonable steps to obtain finance and that the condition precedent had therefore been satisfied. The court reasoned that the defendant's termination was premature and not in accordance with the contract's terms. The legal principle applied was that a party cannot rely on a condition precedent as a basis for termination if they have prevented its fulfillment or if the other party has acted reasonably and in good faith to satisfy it. The court ultimately held that the contract remained on foot.