The case of Hawkes Menangle Pty Ltd v Brennan [2023] NSWSC 1095 was a Supreme Court case about a dispute over a contract for the sale of a property in Menangle NSW. The contract was dated 8 December 2020, completion of the contract was to occur 18 months after the contract date. The parties agreed to a settlement date of 8 June 2022.
When settlement did not occur on that date, the vendors issued a notice to complete on 9 June 2022, setting a deadline of 24 June 2022. Upon the purchaser’s failure to settle by this deadline, the vendors attempted to terminate the contract.
The court found that the phrase “18 months after the contract date” meant that the completion date fell after 8 June 2022, making the correct completion date 9 June 2022. The notice to complete was invalid and the vendors could not rely on it because it was served on 9 June 2022 – a day earlier than required, This meant that the subsequent notice of termination was also flawed.. The court ordered specific performance of the contract, requiring the vendors to proceed with the sale.
This case highlights how critical it is to draft contracts for sale correctly and for the need of ther parties to stick to the timelines set by the contract.
