Mordue v Kroone [2007] NSWSC 273

Mordue v Kroone [2007] NSWSC 273

The option was validly exercised. The 21 March 2000 letter gave the required notice and the enclosed further contract was included only as a caution, so no execution of another contract was necessary. The differing area descriptions in the counterparts did not destroy the bargain because both counterparts attached the same red outlined plan identifying the land. Special Condition 24(c) was satisfied because the DCP operated on the four hectare minimum in cl 15(2) of the LEP and reduced the planning barrier to one hectare where reticulated water can and will be made available, thereby removing the impediment to exercise of the option. The defendant had not co-operated and the plaintiffs...

Jurisdiction
Australia
Judgment Date
30 March 2007
Procedural Posture
Vendor Purchaser Suit Seeking Specific Performance of a Contract for the Sale of Land Alleged to Have Been Effected by Exercise of an Option / Final Judgment
Outcome
The plaintiffs are entitled to the declaratory relief sought and to specific performance; the defendant is to pay the costs of the proceedings.
Legal Topics
['exercise of Option to Purchase Land' 'specific Performance' 'construction of Condition Precedent' 'subdivision and Zoning Controls' 'exchange of Dissimilar Counterparts']
['contract' 'property' 'equity' 'planning Law'] ['exercise of Option to Purchase Land' 'specific Performance' 'construction of Condition Precedent' 'subdivision and Zoning Controls' 'exchange of Dissimilar Counterparts']

Case Brief

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Procedural Posture

Vendor Purchaser Suit Seeking Specific Performance of a Contract for the Sale of Land Alleged to Have Been Effected by Exercise of an Option / Final Judgment

Legal Issues

  1. 1 ['Whether the notice dated 21 March 2000 validly exercised the option despite enclosing a further contract for execution that was not required by Special Condition 24.' 'Whether the discrepancy between the descriptions of the option land in the counterparts of the Contract destroyed the bargain.' 'Whether the condition precedent in Special Condition 24(c), concerning alteration of zoning to permit subdivision of areas of less than ten acres, was fulfilled within time or at all.' 'Whether the defendant refused or failed to co-operate in implementation of the Reconveyance Contract.']

Ratio Decidendi

The option was validly exercised. The 21 March 2000 letter gave the required notice and the enclosed further contract was included only as a caution, so no execution of another contract was necessary. The differing area descriptions in the counterparts did not destroy the bargain because both counterparts attached the same red outlined plan identifying the land. Special Condition 24(c) was satisfied because the DCP operated on the four hectare minimum in cl 15(2) of the LEP and reduced the planning barrier to one hectare where reticulated water can and will be made available, thereby removing the impediment to exercise of the option. The defendant had not co-operated and the plaintiffs...

Court Disposition

The plaintiffs are entitled to the declaratory relief sought and to specific performance; the defendant is to pay the costs of the proceedings.

Orders

  • ['The plaintiffs are entitled to the declaratory relief sought and to specific performance.' 'The parties should bring in Short Minutes to reflect these orders.' 'The defendant is to pay the costs of the proceedings.']