Visual Building Construction Pty Ltd v Armitstead (No 2)

The proceeding concerned an appeal from a decision of the Supreme Court of New South Wales. The appellant, Visual Building Construction Pty Ltd, sought to challenge the validity of its termination of a building contract with the respondent, Armitstead. The core of the dispute revolved around whether the termination was lawful, particularly in relation to the notice provisions within the contract.

The primary legal issue before the Court of Appeal was whether the respondent was entitled to 10 business days' notice to remedy a default before the appellant could validly terminate the contract. The court also considered whether there were alternative grounds upon which the contract could have been terminated, referencing the principles established in *Shepherd v Felt & Textiles of Australia Ltd*.

The Court of Appeal affirmed the decision of the primary judge, finding that the notice provided by the appellant was insufficient to effect a valid termination under the contract. The court reasoned that the contractual terms required a specific period for the respondent to remedy any alleged default, and this period had not been adequately afforded. Consequently, the termination was deemed unlawful.

The appeal was dismissed, and the appellant was ordered to pay the costs of the appeal.