Sterling Estates Development Corporation Pty Limited v Malouf & Anor [2003] NSWCA 278

Sterling Estates Development Corporation Pty Limited v Malouf & Anor [2003] NSWCA 278

On proper construction of the Contract, a 'Special Fault' is a fault so significant that it would substantially preclude occupation pending rectification; the uneven concrete floor was not of such a nature. The appellant was not in breach, so the Notice to Complete and subsequent Notice of Termination were valid, entitling the appellant to terminate the contract.

Jurisdiction
Australia
Judgment Date
02 October 2003
Procedural Posture
Appeal / Final Judgment
Outcome
Appeal allowed
Legal Topics
['construction of Contract' 'contract for Sale of Land and Building' 'special Faults Clause' 'specific Performance' 'termination of Contract']
['contract Law' 'property Law'] ['construction of Contract' 'contract for Sale of Land and Building' 'special Faults Clause' 'specific Performance' 'termination of Contract']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 ["Whether the uneven concrete floor constituted a 'Special Fault' under the contract requiring rectification before completion" 'Whether the appellant vendor was entitled to serve a Notice to Complete and then to terminate the contract' "Proper construction of the 'Special Faults' clause in the contract"]

Ratio Decidendi

On proper construction of the Contract, a 'Special Fault' is a fault so significant that it would substantially preclude occupation pending rectification; the uneven concrete floor was not of such a nature. The appellant was not in breach, so the Notice to Complete and subsequent Notice of Termination were valid, entitling the appellant to terminate the contract.

Court Disposition

Appeal allowed

Orders

  • ['Declarations and orders made by Young CJ in Eq on 24 October 2002 set aside' 'Declare that the Notice of Termination dated 3 June 2002 served by the appellant on the respondents in respect of the Contract was and is valid' 'Declare that the Contract was validly terminated by the appellant' 'Order that Caveat...