DISTRICT COURT OF QUEENSLAND
CITATION:
Le & Anor v Qureshi & Anor [2003] QDC 442
PARTIES:
NHAN CHI LE AND THI THANH XUAN TRAN
Plaintiffsv
MOHAMMAD QURESHI AND SAADIA QURESHI
DefendantsFILE NO/S:
BD 3178 of 2003
and
BD 3643 of 2003DIVISION:
Civil jurisdiction
PROCEEDING:
Application for summary judgment
ORIGINATING COURT:
Brisbane
DELIVERED ON:
9 December 2003
DELIVERED AT:
Brisbane
HEARING DATE:
28 November 2003
JUDGE:
Judge Robin QC
ORDER:
Application granted, orders to be finalised
CATCHWORDS:
Summary judgment application by purchasers – vendors (seller) terminated under cl 91 of REIQ Queensland Law Society –Standard Contract For Houses and Land (5th ed) for purchasers breach of obligation under cl 5.2 to deliver transfer documents to the seller “a reasonable time before the Settlement Date – Vendors indicated correspondence should go to their solicitors’ post office box – settlement due Monday afternoon – transfer documents posted (and cleared) previous Thursday afternoon – although solicitors were in adjoining suburbs, transfer documents were not available in post office box until Monday morning – whether purchasers were in breach - assuming purchasers were in breach, court would relieve them from forfeiture of their bargain – obligation of contracting parties to co-operate considered – UCPR r 292
COUNSEL:
P Smith for plaintiffs
V Brennan for defendantsSOLICITORS:
TDT & Co Lawyers for plaintiffs
Lake Lawyers for defendants
This is the plaintiff-purchasers’ application for summary judgment for specific performance against the defendant-vendors. The claim was filed as 3178 of 2003 on 24 September 2003. For some reason which has not been made clear, when the “application” was brought in for filing it was re-entitled “originating application” and given a separate file number, with the consequence that the plaintiffs became obliged to pay additional fees of $428.60. The Contract Date of the parties’ agreement, in the Law Society-REIQ Form (5th ed.) is 7 July 2003, the Settlement Date “6 weeks from the date of contract”, which was 18 August 2003. The contract price is $220,000 including a deposit of $11,000, for the subject property, land and residence constructed on it; material before the court indicates that the Valuer General’s valuation of the land, unimproved, relevant for purposes of the court’s jurisdiction is $74,000, well within the jurisdictional limit.
In a rising market (of which there is evidence before the court), the defendants say they have terminated the agreement for failure of the plaintiffs to deliver transfer documents in time. The Terms of Contract provide:
“6.1Time is of the essence of this contract, except regarding any agreement between the parties on a time of day for settlement.
5. Settlement provides, in part:
“5.1 Time and Date
(1)Settlement must occur between 9am and 5pm on the Settlement Date.
(2)If the parties do not agree on where settlement is to occur, it must take place in the Place for Settlement at the office of a solicitor or Financial Institution nominated by the Seller, or, if the Seller does not make a nomination, at the land registry…
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- AGLC
- Le v Qureshi [2003] QDC 442
- Case
- [2003] QDC 442
- Decision Date
CaseChat Overview and Summary
The court examined the meaning of "a reasonable time" and the context in which it was used in the contract. The court held that the phrase "a reasonable time" was a subjective term and should be interpreted in light of the circumstances of the case. The court found that the purchasers had breached the contract by not delivering the transfer documents in a timely manner. However, the court also considered the obligation of the contracting parties to cooperate and the possibility of relieving the purchasers from the forfeiture of their bargain. The court held that the vendors had not acted cooperatively by specifying that correspondence should be sent to their solicitors’ post office box without ensuring that the documents would be available in a timely manner. The court found that the purchasers' breach was not so fundamental that it entitled the vendors to terminate the contract.
The court granted the application for summary judgment and ordered that the orders be finalised. The court held that the purchasers were entitled to specific performance of the contract and that the vendors were liable for damages for their wrongful termination of the contract. The court also ordered that the vendors pay the purchasers' costs of the application. The court emphasised the importance of the obligation of the contracting parties to cooperate and the need to interpret the terms of the contract in light of the circumstances of the case.
Orders
Orders of the court
Application granted, orders to be finalised
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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