SUPREME COURT OF VICTORIA
COURT OF APPEAL
No 3787 of 2009
| SOLID INVESTMENTS AUSTRALIA PTY LTD | |
| Appellant | |
| v | |
| JENNIFER LILIAN CLIFFORD | 1st Respondent |
| and | |
| MARIAN MARGARETTA BAYLEY | 2nd Respondent |
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JUDGES: | MANDIE and HARPER JJA and EMERTON AJA | |
WHERE HELD: | MELBOURNE | |
DATE OF HEARING: | 9 March 2010 | |
DATE OF JUDGMENT: | 24 March 2010 | |
MEDIUM NEUTRAL CITATION: | [2010] VSCA 59 | |
JUDGMENT APPEALED FROM: | Clifford v Solid Investments [2009] VSC 223 (Bongiorno J) | |
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REAL PROPERTY – Sale of land – Sale of lots on unregistered plan of subdivision – Whether Purchasers had lawfully rescinded contracts under s 9AE(2) of the Sale of Land Act 1962 (Vic) – Whether special condition in contract empowering Vendor to extend period for registration of plan of subdivision meant that ‘another period’ had been ‘specified’ within the meaning of s 9AE(2) – Whether Purchasers had waived or elected not to exercise their right to rescind.
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| APPEARANCES: | Counsel | Solicitors |
| For the Appellant | Mr M H Whitten | Challenge Legal |
| For the Respondents | Mr T R Messer | Mitchell Burke & Co |
MANDIE JA:
The appellant (‘the Vendor’) appeals from a judgment of a judge in the Trial Division by which it was declared that the respondents (‘the Purchasers’) had lawfully rescinded two contracts for the sale of land with the Vendor pursuant to s 9AE(2) of the Sale of Land Act 1962 (Vic) (‘the SLA’).
Facts
By a contract of sale with the Vendor dated 31 July 2006, the first respondent purchased Lot 401 on an unregistered plan of subdivision with respect to a multi-storey development in Geelong. By a contract of sale with the Vendor dated 2 August 2006, both respondents purchased Lot 402 on the same unregistered plan of subdivision. The contracts of sale are relevantly identical and the same questions arose in relation to each of them.
Each of the contracts was expressed to be conditional upon registration of the plan of subdivision and conferred on the Purchasers a right to avoid the contract if the plan was not registered on or prior to ‘the Plan Registration Date’, that date being defined as ‘the date that is 30 months after the Date of Sale’. Thirty months after the Date of Sale under the contracts was 30 January 2009 and 2 February 2009 respectively. However, the contracts also purported to give the Vendor a right to extend the Plan Registration Date in certain circumstances.
The relevant special conditions of the contracts provided as follows:
1. Definitions and Interpretations
1.1 Definitions
In this contract, unless there is something inconsistent in the subject matter or context: -
(a) …
‘Plan Registration Date’ means the date that is 30 months after the Day of Sale…
4 Contract condition on registration of plan
4.1This contract is subject to and conditional upon the registration of the Plan;
4.2If the condition referred to in Clause 4.1 hereof is not satisfied prior to the Plan Registration Date the purchaser may at any time after the Plan Registration Date but before the…
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- Case
- [2010] VSCA 59
- Decision Date
CaseChat Overview and Summary
The court had to determine whether the purchasers' right to rescind was affected by the special condition that permitted the vendor to extend the registration period. Furthermore, the court examined whether the purchasers had waived or elected not to exercise their right to rescind. In reaching its decision, the court considered the statutory framework provided by the Sale of Land Act 1962 (Vic) and the contractual terms between the parties. The court's analysis involved interpreting the legislative intent behind section 9AE(2) and assessing whether the special condition aligned with or deviated from this legislative purpose.
The Supreme Court of Victoria ruled that the special condition in the contract did not constitute a specified 'another period' within the meaning of section 9AE(2). Consequently, the purchasers were entitled to rescind the contracts. The court found that the purchasers had not waived or elected not to exercise their right to rescind, as there was no evidence of conduct indicating such a decision. As a result, the court ordered that the contracts of sale were rescinded, and the purchasers were entitled to a refund of their deposits.
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