Nelson v Ji

In *Nelson v Ji*, the District Court of New South Wales was asked to determine a dispute concerning a contract for the sale of a residential property. The plaintiff, Mr. Nelson, sought to terminate the contract and recover his deposit, alleging that the defendant, Ms. Ji, had breached a contractual term requiring vacant possession upon settlement. Ms. Ji, the vendor, contended that she had complied with her obligations and that Mr. Nelson was not entitled to terminate the agreement.

The central legal issue before the Court was whether the vendor's failure to remove all personal belongings and rubbish from the property by the settlement date constituted a breach of the contractual term requiring vacant possession. The Court was required to interpret the meaning of "vacant possession" in the context of a residential property sale and to determine whether the items left at the property were so substantial as to prevent the purchaser from taking immediate and exclusive possession.

Judge Dowdy reasoned that the term "vacant possession" implies that the vendor must leave the property free from any personal belongings, rubbish, or other impediments that would prevent the purchaser from occupying and using the property as their own. In this instance, the Court found that the presence of numerous items of furniture, personal effects, and rubbish throughout the house and garden was inconsistent with the concept of vacant possession. Consequently, the Court held that Ms. Ji had breached the contract.

The Court ordered that Mr. Nelson was entitled to terminate the contract and recover his deposit.