Mitchell v Pattern Holdings Pty Ltd

This case concerned an appeal from a decision regarding a contract for the sale of a strata lot "off the plan" between Mr. Mitchell (the purchaser) and Pattern Holdings Pty Ltd (the vendor). The contract was conditional on the registration of a strata plan "substantially in accordance with" a draft strata plan. Mr. Mitchell alleged that the vendor had failed to use all reasonable efforts to secure registration of the strata plan substantially in accordance with the draft, and that the vendor was therefore not entitled to terminate the contract.

The court was required to determine whether the strata plan ultimately registered was substantially in accordance with the draft plan, and whether the vendor had failed to use all reasonable endeavours to procure such registration. A further issue was whether, if the vendor had failed in its obligations, it was still entitled to terminate the contract.

The court considered the obligation to use all reasonable endeavours, referencing authorities such as *Nina’s Bar Bistro Pty. Ltd. v. MBE Corporation (Sydney) Pty. Ltd.* and *Selkirk v. Romar Investments Limited*. It was held that for a failure to comply with a contractual obligation to preclude a party's right to terminate, there must be a direct causal relationship between compliance and the failure to complete, with the onus of proof on the non-defaulting party. However, in this instance, the court found that the vendor had acted expeditiously to seek modifications to the development consent, and that the council's ultimate decision would not have been altered even with greater expedition. Therefore, the court concluded that the vendor had made reasonable efforts to gain approval for its plan, and the judge at first instance had not erred in this finding.

The appeal was dismissed.