Public Trustee (NSW) v Gavel

The High Court of Australia considered a dispute between the Public Trustee of New South Wales, as executor of the estate of the late Mr. Gavel, and Mr. Gavel's purchaser, concerning the sale of land. The contract for sale was made subject to the consent of the Minister for Lands to the transfer of the land. The purchaser applied for this consent, but the Minister subsequently withdrew the application. The core of the dispute revolved around whether the purchaser was entitled to withdraw from the contract following the Minister's withdrawal of the application for consent.

The High Court was required to determine whether the purchaser's obligation to complete the purchase was discharged by the Minister's withdrawal of the application for consent. Specifically, the Court had to consider the effect of the condition precedent in the contract, which stipulated that the sale was subject to the Minister's consent. The central question was whether the purchaser could rely on the Minister's action as a basis for terminating the contract, or if the purchaser had an ongoing obligation to pursue the consent.

The Court reasoned that the condition precedent, requiring the Minister's consent, was for the benefit of the purchaser. As the purchaser had initiated the application for consent, they retained the right to withdraw from the contract if that consent was not forthcoming. The Minister's withdrawal of the application was not an event that could be attributed to the vendor, nor did it prevent the purchaser from fulfilling their obligations under the contract. Therefore, the purchaser was entitled to treat the contract as at an end. The High Court dismissed the appeal.