BAHRAMITASH V KUMAR SC CIV 23/2004

BAHRAMITASH V KUMAR SC CIV 23/2004

Where a vendor by words or conduct has unambiguously indicated an unwillingness or inability to accept a contractually proper tender, the purchaser need not make a formal tender; here contemporaneous solicitor communications established such futility so the vendor was in default and the purchasers were entitled to specific performance.

Citation
openlaw-4c14ec9c_f28b_4c1f_ade4_71d43d85337b.pdf
Parties
Appellant (vendor): Parsoa Bahramitash; Respondent (purchaser): Satish Kumar; Respondent (purchaser): Sunila Kumar
Court
Supreme Court
Jurisdiction
New Zealand
Judgment Date
21 June 2005
Procedural Posture
Civil Appeal to Supreme Court (specific Performance) / Final Judgment on Appeal
Outcome
Appeal dismissed; decree of specific performance varied as set out in orders
Legal Topics
Specific Performance, Tender and Settlement, Risk of Loss, Contractual Remedies, Contract Interpretation

Case Brief

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Parties

Parsoa Bahramitash

Appellant (vendor)

Satish Kumar

Respondent (purchaser)

Sunila Kumar

Respondent (purchaser)

Procedural Posture

Civil Appeal to Supreme Court (specific Performance) / Final Judgment on Appeal

  1. 1 Whether the vendor validly cancelled the contract
  2. 2 Whether purchasers were required to make a formal tender or whether tender would have been futile
  3. 3 Whether clause 4.2(2) provided an exclusive remedy for damage not rendering property untenantable

Ratio Decidendi

Where a vendor by words or conduct has unambiguously indicated an unwillingness or inability to accept a contractually proper tender, the purchaser need not make a formal tender; here contemporaneous solicitor communications established such futility so the vendor was in default and the purchasers were entitled to specific performance.

Court Disposition

Appeal dismissed; decree of specific performance varied as set out in orders

Orders

  • The appeal is dismissed save that the decree of specific performance made by the Court of Appeal is varied as follows.
  • The date on which settlement is to take place is to be 5 July 2005. Interest is to be payable by the appellant as from 11 September 2003 to 5 July 2005 in accordance with cl 3.10(2) of the General Terms of Sale of the Agreement for Sale and Purchase.