Wright v Fowler

In *Wright v Fowler*, 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 of Appeal held that the vendor's failure to obtain the council approval by the contractual date did not, in itself, amount to a repudiation. The court reasoned that the condition precedent was for the benefit of the purchaser, who had the option to waive it. As the purchaser had not unequivocally indicated an intention to terminate the contract prior to the vendor's subsequent actions, the vendor's conduct was not a repudiation. The court applied the principles of contract law regarding conditions precedent and repudiation, emphasizing that a party's conduct must clearly demonstrate an intention no longer to be bound by the contract for it to be considered a repudiation.

The Court of Appeal allowed the vendor's appeal, finding that the purchaser had wrongfully terminated the contract. The court ordered that the purchaser's claim for rescission and return of the deposit be dismissed.