Wachmer v Jaksic

The case of Wachmer v Jaksic involved a dispute between the plaintiff, Wachmer, and the defendant, Jaksic, regarding the sale of a property that included a market garden. The central issue was the interpretation of a written contract for the sale, with particular focus on the admissibility of certain pieces of evidence and the implications of post-contractual conduct. The matter was heard in the Supreme Court of New South Wales. The court had to determine whether evidence of a term that was deleted before the contract was signed could be admitted and whether evidence of post-contractual conduct could be taken into account. Additionally, the court needed to address whether a party in default could terminate the contract for a breach by the other party and the appropriate measure of damages, including the plaintiff's claim for lost opportunity.

The court examined the principles of contract construction, focusing on the intention of the parties as expressed in the written contract. It held that evidence of deletions made before signing the contract was not admissible, as it could not be used to contradict the terms of the contract as agreed upon. Similarly, the court ruled that post-contractual conduct was not admissible for the purpose of altering the terms of the contract. Regarding the termination of the contract for breach, the court found that a party in default could not unilaterally terminate the contract unless the breach was fundamental and the contract specifically allowed for such termination. The court also determined that the onus of proving the existence of a lost opportunity fell on the plaintiff, and in this instance, the plaintiff had not met this burden. Consequently, the court dismissed the plaintiff's claim.