Laundy Hotels (Quarry) Pty Limited v Dyco Hotels Pty LimitedCitation:[2023] HCA 6Before:Kiefel CJ, Gageler, Gordon, Gleeson, Jagot JJDate:08 Mar 2023Case Number:S125/2022Read more

Laundy Hotels (Quarry) Pty Limited v Dyco Hotels Pty LimitedCitation:[2023] HCA 6Before:Kiefel CJ, Gageler, Gordon, Gleeson, Jagot JJDate:08 Mar 2023Case Number:S125/2022Read more

The vendor was not in breach of contract because its obligation to carry on the business in the usual and ordinary course was qualified by the requirement to comply with lawful restrictions, including those imposed by COVID-19 public health orders.

Parties
Vendor: Vendor (name not specified); Purchaser: Purchaser (name not specified)
Jurisdiction
Australia
Judgment Date
08 March 2023
Procedural Posture
Contract Sale of Business / Judgment
Outcome
Vendor not in breach; contract enforceable.
Legal Topics
Construction of Contract, Obligations Under Sale of Business, COVID 19 Impact on Contracts

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Parties

Vendor (name not specified)

Vendor

Purchaser (name not specified)

Purchaser

Procedural Posture

Contract Sale of Business / Judgment

  1. 1 Whether the vendor was obliged to carry on the business in the manner conducted at the time of contract to the extent lawful under COVID-19 restrictions
  2. 2 Whether the vendor was 'ready, willing and able to complete and not in default' at the time notice to complete was served

Ratio Decidendi

The vendor was not in breach of contract because its obligation to carry on the business in the usual and ordinary course was qualified by the requirement to comply with lawful restrictions, including those imposed by COVID-19 public health orders.

Court Disposition

Vendor not in breach; contract enforceable.

Orders

  • Vendor entitled to serve notice to complete.
  • Purchaser's claim for breach dismissed.