Lenferna v Torane

The case of Lenferna v Torane was heard by the Supreme Court of New South Wales. The dispute involved the purchase of a residential property in Sydney by the purchasers, the Lenfernas, from the vendors, the Toranes. The purchasers alleged that the vendors refused to complete the sale and terminated the contract, despite the purchasers' payment of the entire deposit. The vendors argued that the purchasers had not paid the deposit on time, leading them to terminate the contract and subsequently refuse to complete the sale. The purchasers applied for an order of specific performance, while the vendors argued against it on the basis of the purchasers' failure to pay the deposit on time and their own lack of alternative accommodation.
The court was required to determine whether the purchasers' failure to pay the deposit on time was a breach of contract that justified the vendors' termination of the agreement. Additionally, the court needed to assess whether the vendors' failure to communicate the termination to the purchasers constituted a valid termination of the contract. The court also had to consider whether the hardship caused to the purchasers by the vendors' refusal to complete the sale outweighed any breach by the purchasers.
The court found that the purchasers' failure to pay the deposit on time was not a material breach of the contract, as the vendors had not communicated the termination of the contract to the purchasers. The court held that the vendors' failure to communicate the termination meant that the contract remained in effect, and the purchasers were entitled to specific performance. The court also found that the hardship caused to the purchasers by the vendors' refusal to complete the sale was significant, and the vendors did not have alternative accommodation, which supported the granting of specific performance. The court ordered the vendors to complete the sale of the property to the purchasers.