Sunworld Enterprises Pty Ltd v Lacco

Sunworld Enterprises Pty Ltd was a purchaser of property in Queensland from Lacco, the vendor. The contract for sale included a provision allowing termination if the strata plan was not registered 32 months after the execution of the contract. The dispute arose when Lacco purported to terminate the contract, claiming the strata plan had not been registered within the stipulated time. Sunworld challenged the validity of the termination. The case was heard in the Queensland Court of Appeal.

The primary legal issue was whether the vendor had the right to terminate the contract based on the non-registration of the strata plan. A secondary issue was whether an implied term to do all things necessary to enable the other party to benefit from the contract existed, potentially invalidating the termination. The court also considered whether the termination was valid under the contract's terms and if the decision to allow termination was plainly wrong, potentially causing substantial injustice if left unreversed.

The Court of Appeal found that the contract contained an implied term requiring both parties to take all necessary steps to register the strata plan. This term meant that the vendor's purported termination was invalid as it did not comply with the implied requirement to assist in enabling the contract's benefit. The Court concluded that the decision to allow termination was plainly wrong and that substantial injustice would result if it remained unreversed. Consequently, the Court granted leave to appeal and allowed the appeal.

The Court ordered that leave to appeal was granted and the appeal allowed.