Stojanovski v Gheiti

In *Stojanovski v Gheiti*, the New South Wales Court of Appeal considered an appeal from a decision of the District Court concerning a dispute between a vendor and a purchaser of land. The purchaser had sought to terminate the contract of sale, alleging that the vendor had failed to comply with a condition precedent.

The primary legal issue before the Court of Appeal was whether the vendor had validly satisfied a condition precedent to the contract of sale, which required the vendor to obtain a "satisfactory report" from a specified local council regarding certain building works. The court had to determine the objective standard for "satisfactory" and whether the vendor's actions met that standard.

The Court of Appeal held that the condition precedent required the vendor to take all reasonable steps to obtain a report that was satisfactory in substance, not merely in form. The court found that the vendor had not discharged this obligation, as the report obtained was equivocal and did not definitively address the concerns raised by the council. The principles of contractual interpretation, particularly concerning conditions precedent and the implied duty of cooperation, were central to the court's reasoning.

The Court of Appeal allowed the appeal, finding that the purchaser was entitled to terminate the contract. The court ordered that the appeal be upheld, the orders of the District Court be set aside, and that the contract be rescinded.