Rennick & Gaynor Mortgages Ltd v Cossar

The dispute between Rennick & Gaynor Mortgages Ltd and Cossar centred on whether the supply of a Lenders Certificate under the Exceptional Circumstances Grant Scheme operated as a condition precedent to the mortgagee's obligation to advance funds. Cossar had applied for a mortgage from Rennick & Gaynor and subsequently requested an Exceptional Circumstances Grant to be used for home renovations. Cossar did not provide the required Lenders Certificate, and Rennick & Gaynor refused to advance the funds. Cossar argued that the failure to provide the certificate constituted unconscionable conduct and sought an estoppel against Rennick & Gaynor's claim.

The court was tasked with determining whether the supply of the Lenders Certificate was a condition precedent to the mortgagee's obligation to advance funds and if the failure to supply the certificate amounted to unconscionable conduct warranting an estoppel. The central issue was whether the contract between the parties imposed the obligation of supplying the certificate as a condition precedent and, if so, whether the failure to meet this condition justified an estoppel.

The court held that the supply of the Lenders Certificate was not a condition precedent to the mortgagee's obligation to advance funds. The contract did not expressly or impliedly impose such a condition, and the failure to supply the certificate did not operate as a condition precedent. Furthermore, the court found that the failure to provide the certificate did not constitute unconscionable conduct warranting an estoppel. The court emphasised that Cossar's failure to provide the certificate was a failure to meet a contractual obligation, rather than conduct that would make it unconscionable for Rennick & Gaynor to enforce their rights under the contract.

The court dismissed Cossar's claims, and Rennick & Gaynor was not required to advance the funds under the mortgage agreement.