Jobema Developments Pty Limited v Zhu

Jobema Developments Pty Limited sought an order permitting it to rescind an off the plan contract for sale of property pursuant to a sunset clause under s 66ZL of the Conveyancing Act 1919 (NSW). The respondents, Zhu, who were purchasers under the contract, opposed the application. The dispute arose after the original developer of the land sold the property to Jobema, which subsequently entered into a novation agreement to assume the development and other obligations of the original developer under existing off the plan contracts.

The primary legal issue before the court was whether the vendor's application to rescind the off the plan contract was just and equitable under s 66ZL. The court had to consider the circumstances surrounding the novation agreement, the obligations assumed by Jobema, and the impact of the proposed rescission on the purchasers. The court also had to weigh the principles of equity and fairness in determining whether the rescission would be just and equitable.

The court held that the application for rescission was not just and equitable. The court found that Jobema had assumed the obligations of the original developer, including the obligation to complete the development of the land. The court emphasised the importance of the principle of privity of contract and the rights of purchasers under off the plan contracts. The court concluded that the purchasers had a legitimate expectation of completion of the development and that the rescission would unjustly deprive them of their rights. Therefore, the application for rescission was dismissed.

No further orders were made.