Sandra Investments Pty ltd v Booth

Sandra Investments Pty Ltd (the appellant) appealed to the High Court of Australia against a decision of the Supreme Court of New South Wales, which had dismissed its appeal from a judgment of the District Court. The dispute concerned the appellant's claim for damages for breach of contract against the respondent, Mr. Booth, arising from the sale of a property. The core of the disagreement lay in whether the respondent had validly exercised an option to purchase the property, and consequently, whether the appellant had breached the contract by failing to complete the sale.

The High Court was required to determine whether the respondent had validly exercised the option to purchase the property. This involved considering the terms of the option agreement, particularly the method stipulated for its exercise, and whether the respondent's actions constituted a sufficient compliance with those terms. A further issue was whether the appellant's conduct, in repudiating the contract, had waived any requirement for strict compliance with the option exercise provisions.

The Court, in a joint judgment, held that the respondent had not validly exercised the option. The terms of the option agreement were clear and required a specific method of communication for its exercise, which had not been met. The Court rejected the argument that the appellant's conduct had waived strict compliance, finding that the respondent had not relied on any such waiver to their detriment. Consequently, there was no binding contract of sale for the appellant to breach.

The High Court allowed the appeal, setting aside the judgment of the Supreme Court and ordering that the appellant's claim be dismissed.