Lockyer Land Plans Pty Ltd v Metcoal Trading Pty Ltd

Lockyer Land Plans Pty Ltd (the plaintiff) brought proceedings against Metcoal Trading Pty Ltd (the first defendant) and others, seeking specific performance of a contract for the sale of land. The dispute arose when the first defendant purported to terminate the contract for breach of a confidentiality clause. The plaintiff sought an order for specific performance, claiming the termination was wrongful. The first defendant argued that the plaintiff was not ready, willing, and able to perform the contract due to a mortgage over the property. The court was tasked with determining whether the first defendant validly terminated the contract for breach of the confidentiality provision and whether the disclosures were made by employees or representatives of the plaintiff.

The central issue before the court was whether the first defendant validly terminated the contract due to the plaintiff's alleged breach of the confidentiality provision. The court had to ascertain whether the breach was material and whether the first defendant's termination was justified. Additionally, the court needed to determine if the plaintiff was ready, willing, and able to perform the contract, particularly in light of the mortgage over the property. The court also needed to consider the nature of the disclosures and whether they were made by the plaintiff's employees or representatives.

In resolving the issues, the court examined the terms of the contract, the nature of the breach, and the consequences of the breach. The court found that the first defendant did not validly terminate the contract due to the plaintiff's breach of the confidentiality provision. The court also concluded that the plaintiff was ready, willing, and able to perform the contract despite the mortgage over the property. The court held that the first defendant's termination was wrongful and ordered specific performance of the contract as per the initialled draft supplied by the plaintiff. The court reserved costs for further consideration.

The court ordered specific performance of the contract as per the initialled draft supplied by the plaintiff. The parties were to be heard on the issue of costs.