Xuarez & Vitela

In *Xuarez & Vitela*, the Supreme Court of New South Wales was asked to determine whether a party to a contract for the sale of land was entitled to terminate the contract due to the other party's failure to comply with a notice to complete. The dispute arose from a contract for the sale of a residential property, where the vendor issued a notice to complete to the purchaser. The purchaser failed to complete the sale by the date specified in the notice, leading the vendor to seek to terminate the contract.

The central legal issue before the Court was whether the notice to complete was valid and effective in law. Specifically, the Court had to consider whether the notice complied with the requirements of the contract and the relevant legislation, and whether the vendor's subsequent actions constituted a waiver of their right to terminate. The Court also considered the principles of equity in relation to time being of the essence in contracts for the sale of land.

Carew J found that the notice to complete was indeed valid and that the purchaser's failure to comply with its terms entitled the vendor to terminate the contract. The Court applied the principles that a notice to complete must be clear, unequivocal, and specify a reasonable time for completion. It was held that the notice in this instance met these requirements. Furthermore, the Court determined that there was no conduct on the part of the vendor that could be construed as a waiver of their right to rely on the notice. The Court concluded that time was of the essence for the completion of the contract, and the purchaser's default was not excused by any equitable considerations.