Pleash v Bunt

In *Pleash v Bunt*, the New South Wales Court of Appeal considered a dispute between the appellant, Pleash, and the respondent, Bunt, concerning the interpretation and enforceability of a contract for the sale of land. The primary issue revolved around whether the contract, which contained a clause requiring the purchaser to obtain finance, had been validly terminated by the vendor.

The Court was required to determine whether the vendor was entitled to terminate the contract on the basis that the purchaser had failed to obtain finance within the stipulated timeframe. This involved an examination of the purchaser's obligations under the finance clause, the vendor's obligations, and the legal effect of the purchaser's actions in seeking finance. The Court also had to consider whether the vendor had waived any right to terminate by their conduct.

The Court of Appeal held that the vendor was not entitled to terminate the contract. It reasoned that the finance clause imposed obligations on both parties: the purchaser to take reasonable steps to obtain finance, and the vendor to cooperate or at least not hinder the purchaser's efforts. The Court found that the purchaser had taken all reasonable steps to obtain finance, and that the vendor's conduct had, in fact, contributed to the failure to secure finance within the specified period. Consequently, the vendor could not rely on the purchaser's failure to obtain finance as a ground for termination. The appeal was allowed, and the contract was found to be valid and enforceable.