Stevenson and Bothwell

In *Stevenson and Bothwell*, Sexton J of the Supreme Court of Victoria was required to determine a dispute concerning the interpretation of a clause within a contract for the sale of land. The vendor, Stevenson, sought to rely on a clause that permitted rescission if the purchaser, Bothwell, failed to pay the balance of the purchase price by a specified date. Bothwell contended that Stevenson had waived their right to strictly enforce this date.

The central legal issue before the court was whether Stevenson had, through their conduct, waived their right to enforce the contractual deadline for payment of the balance of the purchase price. This involved an examination of the principles of waiver and estoppel in contract law, particularly in the context of land sale agreements where time is often of the essence.

Sexton J found that Stevenson had indeed waived their right to strict performance of the payment date. The court reasoned that Stevenson's conduct, specifically their communication with Bothwell after the due date had passed, indicated an intention to treat the contract as still on foot and to grant an extension for payment. This conduct, coupled with Bothwell's reliance on that indication, gave rise to an equitable estoppel, preventing Stevenson from subsequently rescinding the contract based on the original deadline. The court therefore dismissed Stevenson's application for rescission.