Wanari Pty Ltd v Mercy and Sons Pty Ltd

Wanari Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the interpretation of a building contract and the appellant's entitlement to payment for work performed.

The primary legal issue before the Court of Appeal was whether the appellant had validly terminated the building contract and, consequently, was entitled to recover the value of work done up to the date of termination, or whether the termination was wrongful, entitling the respondent to damages. A related issue was the proper assessment of the quantum of any amount due to the appellant.

The Court of Appeal considered the terms of the building contract, particularly clauses relating to progress payments and the grounds for termination. It applied principles of contract law concerning repudiation and the consequences of a wrongful termination. The Court found that the appellant had not established a valid basis for terminating the contract and that its actions constituted a repudiation. Therefore, the appellant was not entitled to recover the value of work done as if the contract had been validly terminated.

The appeal was dismissed, and the orders of the Supreme Court were affirmed.