Keene v Harkness

In *Keene v Harkness* [1996] NSWCA 298, the New South Wales Court of Appeal considered a dispute between the appellant, Mr Keene, and the respondent, Mr Harkness, concerning the enforceability of a contract for the sale of land. The core of the disagreement revolved around whether the contract had been validly terminated by the vendor.

The primary legal issue before the Court of Appeal was whether the vendor, Mr Harkness, had validly exercised his right to terminate the contract for the sale of land due to the purchaser's alleged breach of a time stipulation. This involved determining whether the notice of termination given by the vendor was effective in law, particularly in light of the purchaser's contention that time was not of the essence or that the notice was otherwise invalid.

The Court of Appeal found that the notice of termination was indeed valid. It reasoned that the contract contained a specific clause making time of the essence for settlement. The purchaser had failed to settle on the stipulated date, and the vendor had subsequently issued a valid notice to complete, which the purchaser also failed to comply with. Applying established principles of contract law regarding time stipulations and notices to complete, the Court concluded that the vendor was entitled to terminate the contract.

Consequently, the Court of Appeal dismissed the purchaser's appeal, upholding the primary judge's decision that the contract had been validly terminated by the vendor.