WILLIAMS (T/as Wheeler) v Bodewis

In *Williams (T/as Wheeler) v Bodewis* [1997] NSWCA 344, the New South Wales Court of Appeal considered a dispute between a vendor, Williams (trading as Wheeler), and a purchaser, Bodewis, concerning a contract for the sale of a property. The core of the disagreement revolved around the interpretation of a special condition within the contract relating to the purchaser's obligation to obtain finance.

The primary legal issue before the Court of Appeal was whether the purchaser had validly terminated the contract by reason of not obtaining finance, or whether the vendor was entitled to treat the contract as repudiated by the purchaser's actions. This required the Court to determine the precise meaning and effect of the special condition, particularly concerning the purchaser's obligations and the timeframe within which finance was to be secured.

The Court analysed the special condition, which stipulated that the contract was conditional upon the purchaser obtaining a loan of a specified amount from a bank or other financial institution within a certain period. The Court held that the condition was for the benefit of the purchaser, meaning they had the right to terminate if finance was not obtained. However, the purchaser was obliged to take all reasonable steps to secure the finance. The Court found that the purchaser had not taken all reasonable steps, and therefore, their purported termination of the contract was ineffective. Consequently, the purchaser was in breach of contract.