WHERRY v WATSON [1991] NSWCA 301

WHERRY v WATSON [1991] NSWCA 301

In the circumstances of the case, due payment of the $3,000 deposit was of basic importance to the transaction, and its dishonour constituted either failure of a condition or fundamental breach entitling the seller to rescind the contract.

Parties
Appellant: KJ Wherry; Respondent: RJ Watson; Interested Party: Classic Auto Search Pty Limited
Jurisdiction
Australia
Judgment Date
14 March 1991
Procedural Posture
Appeal / Decision on Appeal
Outcome
appeal dismissed
Legal Topics
Specific Performance, Rescission of Contract, Unpaid Seller, Sale by Cheque, Deposit, Fundamental Breach
Contract Law Sale of Goods Specific Performance Rescission of Contract Unpaid Seller Sale by Cheque Deposit Fundamental Breach

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Parties

KJ Wherry

Appellant

RJ Watson

Respondent

Classic Auto Search Pty Limited

Interested Party

Procedural Posture

Appeal / Decision on Appeal

Legal Issues

  1. 1 Whether payment of the deposit is a sufficiently important feature of the contract to justify rescission by the seller.
  2. 2 Whether the seller's rights as unpaid seller are limited to those stated in section 42 of the Sale of Goods Act 1923.

Ratio Decidendi

In the circumstances of the case, due payment of the $3,000 deposit was of basic importance to the transaction, and its dishonour constituted either failure of a condition or fundamental breach entitling the seller to rescind the contract.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed.
  • Respondent's costs to be paid by appellant.