Mednick v Saxon

In *Mednick v Saxon*, 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 primary legal issue before the Court of Appeal was whether the vendor had fulfilled a contractual obligation to obtain a "section 88B instrument" prior to settlement. This instrument was a prerequisite for the registration of a plan of subdivision, which was necessary for the purchaser to obtain clear title to the property. The court had to determine the precise nature of the vendor's obligation and whether their actions constituted substantial compliance or a material breach of the contract.

The Court of Appeal held that the vendor had not satisfied the condition precedent. It reasoned that the obligation to obtain the section 88B instrument was a condition precedent to settlement, and its absence meant that the purchaser was entitled to terminate the contract. The court rejected arguments of waiver or substantial performance, finding that the vendor's failure to secure the necessary documentation was a fundamental breach of the agreement.

Consequently, the Court of Appeal dismissed the vendor's appeal and affirmed the primary judge's decision, which had found in favour of the purchaser and allowed them to terminate the contract and recover their deposit.