Mulkearns v Chandos Developments Pty Ltd (No 3)

Mulkearns v Chandos Developments Pty Ltd (No 3) involved a dispute between the purchaser and the developer concerning the sale of land. The purchaser, Mulkearns, sought to recover the deposit and instalments paid under a contract for the sale of land, arguing that the developer, Chandos Developments Pty Ltd, had breached the contract. The case was heard in the Supreme Court of Queensland. The central legal issue was whether the developer's breach of contract entitled the purchaser to recover the deposit and instalments, and if the purchaser's history of defaulting on previous land contracts was relevant to this claim. The court had to determine if the developer's breach of contract was fundamental, justifying the recovery of the money, and if the purchaser's prior defaults impacted their right to relief.

The court considered the nature of the developer's breach and whether it was fundamental, allowing the purchaser to terminate the contract and recover the deposit and instalments. The court acknowledged the purchaser's history of defaulting on land contracts but found that it did not preclude them from recovering the deposit and instalments in this instance. The court reasoned that the developer's breach was fundamental because it prevented the purchaser from obtaining the land, and the purchaser's prior defaults did not negate their right to relief under the contract. The court ultimately concluded that the developer's breach warranted the return of the deposit and instalments to the purchaser.

In light of the court's findings, the developer was ordered to return the deposit and instalments to the purchaser, with interest, within 28 days of the judgment. The court also considered the costs of the proceedings, awarding costs to the purchaser in relation to the developer's unsuccessful appeal. The decision reinforces the principle that a fundamental breach of contract by a developer entitles the purchaser to recover the deposit and instalments, notwithstanding any history of defaults by the purchaser in other transactions.