Rands Developments Pty Ltd v Davis

The parties to this appeal were Rands Developments Pty Ltd (the appellant) and Davis (the respondent). The dispute concerned the respondent's claim for damages for breach of contract, arising from the appellant's failure to complete the sale of a property. The appeal was heard by the High Court of Australia.

The High Court was required to determine whether the appellant had repudiated the contract for the sale of land, thereby entitling the respondent to terminate the contract and claim damages. Specifically, the court considered whether the appellant's conduct, in failing to take steps to obtain vacant possession of the property as required by the contract, amounted to a repudiation.

The court held that the appellant's failure to take reasonable steps to obtain vacant possession constituted a repudiation of the contract. Gibbs, Stephen and Jacobs JJ reasoned that the obligation to give vacant possession was a fundamental term of the contract, and the appellant's inaction demonstrated an intention no longer to be bound by that essential term. The legal principle applied was that a party's conduct can amount to a repudiation if it evinces an intention to be no longer bound by the contract or shows a readiness and willingness to perform the contract only in a manner substantially inconsistent with its terms.

The High Court dismissed the appeal, affirming the decision of the lower court that the respondent was entitled to damages for breach of contract.