McKenzie v Baddeley

In *McKenzie v Baddeley* [1991] NSWCA 196, the New South Wales Court of Appeal considered a dispute between a vendor and a purchaser concerning the sale of a property. The purchaser sought to terminate the contract of sale, alleging that the vendor had failed to comply with a condition precedent.

The central legal issue before the Court of Appeal was whether the vendor's conduct constituted a breach of the contract, specifically in relation to the purchaser's right to terminate. The court had to determine if the vendor's actions, or lack thereof, had frustrated the purchaser's ability to satisfy a condition precedent within the contract.

The Court of Appeal held that the vendor had not breached the contract in a manner that entitled the purchaser to terminate. The court reasoned that the vendor had taken all reasonable steps available to them to fulfil the condition precedent. The legal principle applied was that a party cannot rely on a condition precedent to terminate a contract if their own conduct has prevented its fulfilment. Consequently, the purchaser's attempt to terminate was deemed invalid.