Patton v Harrison [No 1]

The New South Wales Court of Appeal heard an appeal concerning a dispute between the appellant, Mr. Patton, and the respondent, Mr. Harrison, regarding a contract for the sale of land. The primary issue on appeal was whether the respondent had validly terminated the contract due to the appellant's alleged breach.

The Court was required to determine whether the respondent's notice of termination was effective. This involved considering whether the appellant had failed to comply with a condition precedent to settlement, specifically the obtaining of a necessary permit for a proposed subdivision. The Court also had to assess whether the respondent had waived any right to terminate by his conduct.

The Court of Appeal found that the condition precedent had not been satisfied by the appellant within the time stipulated by the contract. It held that the respondent had not waived his right to rely on this failure, as his actions did not unequivocally indicate an intention to proceed with the contract despite the unfulfilled condition. The legal principle applied was that a party seeking to terminate a contract for breach of a condition precedent must act promptly and not by their conduct suggest an intention to waive that condition.

The Court of Appeal dismissed the appeal, upholding the primary judge's decision that the respondent had validly terminated the contract.