Smartchannel Pty Ltd v Zhicheng Chen

Smartchannel Pty Ltd (the applicant) sought an order for specific performance of a contract for the sale of land against Zhicheng Chen (the respondent). The dispute concerned the respondent's alleged repudiation of a contract for the sale of a property located at 100 Forest Road, Hurstville, New South Wales. The applicant sought to compel the respondent to complete the purchase of the property.

The primary legal issue before the court was whether the respondent's conduct constituted a repudiation of the contract, thereby entitling the applicant to terminate the agreement and claim damages, or alternatively, to seek specific performance. This involved determining whether the respondent's failure to attend settlement and provide the necessary documents for completion amounted to an intention not to be bound by the contract.

Justice McDonagh found that the respondent's actions, specifically his failure to attend settlement on the agreed date and his subsequent failure to provide a reasonable explanation or remedy for this default, demonstrated a clear intention to abandon the contract. The court applied the principle that a party's conduct can amount to repudiation if it evinces an intention no longer to be bound by the terms of the contract or shows a willingness to perform the contract only in a way substantially inconsistent with the parties' obligations. The court considered the respondent's conduct in light of the contract's terms and the established legal tests for repudiation.

The court ordered specific performance of the contract, compelling the respondent to complete the purchase of the property.