Mario Casella & Sons Builders Pty Ltd v Duckworth

Mario Casella & Sons Builders Pty Ltd (plaintiff) sought an extension of a caveat lodged over a parcel of land which it had contracted to purchase from Neil James Duckworth (first defendant). The first defendant argued that the contract of sale had been terminated and that, accordingly, the plaintiff had no caveatable interest in the land. The court held that the contract of sale remained on foot because the first defendant had not exercised its entitlement to terminate the contract when it was entitled to do so and had, instead, allowed the contract to remain in force by its conduct. The court further held that the contract had not been brought to an end by operation of law because the special condition concerning the provision of water was a condition subsequent and not a condition precedent. The court also held that the plaintiff had a reasonably arguable case that the first defendant had not used his best endeavours to comply with the special condition and that, in those circumstances, the plaintiff had prospects of obtaining relief by way of specific performance. The court held that the plaintiff had a caveatable interest in the land and ordered that the operation of the caveat be extended.