Stivactas v Michaletos [No 1]

The New South Wales Court of Appeal considered a dispute between Stivactas and Michaletos concerning a contract for the sale of land. The primary issue before the court was whether the contract had been validly terminated by the vendor, Mr Stivactas, due to the purchaser's alleged failure to comply with a condition precedent.

The court was required to determine whether the condition precedent, which stipulated that the purchaser obtain finance on terms satisfactory to the purchaser, had been fulfilled or waived. Specifically, the court had to assess whether the purchaser had acted honestly and reasonably in their attempts to secure finance and whether the vendor's conduct amounted to a waiver of the condition.

The Court of Appeal found that the purchaser had acted honestly and reasonably in seeking finance, and that the vendor had waived the condition by his conduct. The court applied the principles of contract law regarding conditions precedent and waiver, holding that a party cannot rely on the non-fulfilment of a condition precedent if their own conduct has prevented its fulfilment or if they have waived the condition.

The appeal was dismissed, and the contract was found to be valid and binding.