Kruf v Mills

In *Kruf and Anor v Mills*, the New South Wales Court of Appeal considered a dispute concerning the enforceability of a contract for the sale of land. The appellants, Kruf and Anor, were the vendors, and the respondent, Mills, was the purchaser. The central issue revolved around whether the contract had been validly terminated by the vendors due to the purchaser's alleged failure to comply with a condition precedent.

The primary legal question before the Court was whether the purchasers had made a sufficient attempt to satisfy the condition precedent within the stipulated timeframe. This involved an examination of the purchasers' actions and whether they constituted a genuine and reasonable effort to fulfil their contractual obligations. The Court also had to determine the proper interpretation of the condition precedent itself and the consequences of any purported non-compliance.

The Court of Appeal found that the purchasers had indeed made a sufficient attempt to satisfy the condition precedent. Their Honour's reasoning focused on the objective standard of what constitutes a reasonable effort in the circumstances, considering the nature of the condition and the actions taken by the purchasers. The Court held that the vendors were not entitled to terminate the contract on the basis of the purchasers' conduct, as they had acted reasonably and in good faith to fulfil their obligations. Consequently, the appeal was dismissed.