Stephen Michael Larkin v Milchas Investments Pty Ltd

In the Supreme Court of New South Wales, Court of Appeal, Stephen Michael Larkin (the appellant) brought proceedings against Milchas Investments Pty Ltd (the respondent). The dispute concerned the respondent's alleged breach of a contract for the sale of land.

The primary legal issue before the Court of Appeal was whether the respondent had validly terminated the contract for sale due to the appellant's failure to settle the purchase by the stipulated date. This involved an examination of the contractual terms relating to time for settlement and the consequences of default.

The Court considered the principles of contract law concerning time being of the essence and the effect of a notice to complete. It was held that where time is not initially of the essence, a party may make it so by serving a valid notice to complete, provided reasonable time is given for performance. In this instance, the Court found that the notice served by the respondent was not valid as it did not allow a reasonable time for settlement, and therefore the subsequent termination of the contract was wrongful.

Consequently, the Court of Appeal allowed the appeal, finding that the respondent had breached the contract and ordering that the respondent pay damages to the appellant.