Karam v Kolios

In *Karam v Kolios* [1996] NSWCA 293, the New South Wales Court of Appeal considered a dispute between a vendor and a purchaser concerning the sale of a property. The purchaser sought to terminate the contract of sale, alleging that the vendor had failed to comply with a condition precedent.

The central legal issue before the Court of Appeal was whether the vendor's conduct constituted a repudiation of the contract, thereby entitling the purchaser to terminate. Specifically, the court had to determine if the vendor's failure to obtain a necessary council approval by the stipulated date amounted to a breach of a condition precedent that discharged the contract.

The Court of Appeal held that the condition precedent was not fulfilled within the time stipulated in the contract. It reasoned that the vendor's failure to secure the council approval was a breach of a fundamental term of the contract, which gave the purchaser the right to terminate. The court applied principles of contract law relating to conditions precedent and repudiation, finding that the vendor's inaction demonstrated an intention no longer to be bound by the essential terms of the agreement.

The Court of Appeal dismissed the appeal, upholding the primary judge's finding that the purchaser was entitled to terminate the contract and recover their deposit.