Mastoris v Jankowski

In *Mastoris v Jankowski* [1995] NSWCA 278, the New South Wales Court of Appeal considered a dispute between the appellant, Mastoris, and the respondent, Jankowski, concerning the enforceability of a contract for the sale of land. The core of the disagreement revolved around whether the contract had been validly terminated by the vendor, Jankowski, due to the purchaser's, Mastoris', alleged failure to comply with a condition precedent.

The primary legal issue before the Court of Appeal was whether the condition precedent, requiring the purchaser to obtain finance on specified terms by a particular date, had been sufficiently fulfilled or waived by the vendor. This involved determining the precise nature of the condition, the extent of the purchaser's obligations, and whether the vendor's conduct amounted to an affirmation of the contract or an election to terminate. The court also had to consider the principles of waiver and estoppel in the context of contractual conditions precedent.

The Court of Appeal found that the condition precedent had not been satisfied by the purchaser within the stipulated timeframe. It reasoned that the purchaser had not taken all reasonable steps to secure finance on the terms specified in the contract. Furthermore, the court held that the vendor had not waived the condition, as their actions did not unequivocally indicate an intention to proceed with the contract despite the non-fulfilment of the condition. The legal principle applied was that a condition precedent must be strictly performed unless waived by the party for whose benefit it was inserted.

Consequently, the Court of Appeal upheld the trial judge's decision, finding that the vendor was entitled to terminate the contract. The appeal was dismissed.