KANG v GOLDSMITH

This matter concerned a dispute between the plaintiff, Kang, and the defendant, Goldsmith, concerning a contract for the sale of land. The plaintiff sought specific performance of the contract, alleging that the defendant had breached its terms. The case was heard in the Supreme Court of New South Wales.

The central legal issue before the Court was whether the defendant had validly terminated the contract for sale of land due to the plaintiff's alleged failure to comply with a condition precedent. Specifically, the Court had to determine if the plaintiff's actions constituted a sufficient compliance with the contractual requirement, or if the defendant was entitled to treat the contract as at an end.

Judge Street found that the plaintiff had substantially complied with the condition precedent, and that the defendant's purported termination of the contract was therefore wrongful. The Court applied the legal principle that substantial performance, rather than strict or literal performance, is often sufficient to satisfy contractual obligations, particularly where the deviation is minor and does not prejudice the other party. The Court also considered the principles of equity in relation to specific performance, noting that it would be inequitable to allow the defendant to escape the contract based on a technical breach that caused no real harm.

The Court ordered specific performance of the contract, compelling the defendant to proceed with the sale of the land to the plaintiff.