Varga v Scigliano

In *Varga v Scigliano*, the New South Wales Court of Appeal considered a dispute between a vendor and a purchaser concerning the sale of a property. The purchaser sought to terminate the contract of sale, alleging that the vendor had failed to comply with a condition precedent.

The central legal issue before the Court of Appeal was whether the vendor's conduct constituted a repudiation of the contract, thereby entitling the purchaser to terminate. Specifically, the Court had to determine if the vendor's failure to obtain a necessary council approval by the stipulated date amounted to a breach so fundamental as to discharge the contract.

The Court reasoned that the condition precedent, requiring the vendor to obtain council approval for certain renovations, was a material term of the contract. The vendor's inability to fulfil this obligation by the agreed time demonstrated an intention not to be bound by the contract's essential terms. Applying the principles of repudiation, the Court found that the vendor's conduct evinced a clear intention to abandon the contract, giving the purchaser the right to accept the repudiation and terminate.

Consequently, the Court of Appeal dismissed the vendor's appeal, upholding the purchaser's right to terminate the contract and affirming the orders made by the primary judge.