PATETE v Pravlik

In the matter of *Patete v Pravlik*, the Supreme Court of New South Wales was asked to determine whether a party to a contract for the sale of land had validly terminated the contract. The dispute arose after the purchaser, Mr Pravlik, failed to settle the purchase by the agreed date. The vendor, Ms Patete, subsequently issued a notice of termination.

The central legal issue before the Court was whether the notice of termination served by the vendor was valid and effective in terminating the contract. This required the Court to consider the terms of the contract, particularly the settlement clause, and the legal requirements for validly terminating a contract for breach of a time stipulation.

Judge Dowdy found that the notice of termination was invalid. Her Honour reasoned that the contract did not make time of the essence for the settlement date. Consequently, the vendor was required to serve a notice making time of the essence before she could validly terminate the contract for the purchaser's failure to settle on the original settlement date. The notice served did not comply with the requirements of making time of the essence, and therefore, the termination was ineffective.

The Court ordered that the contract for sale of land remained on foot and that the vendor's purported termination was of no force or effect.