Bellmere Park P/L as trustee for the Bellmere Park Development Trust v Cameron Samuel Benson (as personal representative of the estate of Eric Gordon Benson

[2007] QCA 102

Queensland Court of Appeal

Built by Barristers,
For Australian Law.

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Interrogate

Catchwords

1. Contract
2. › Construction and interpretation of contracts
3. › Due diligence conditions
4. › Whether condition void for uncertainty
5. › Whether subjective or objective satisfaction required
6. › Whether condition illusory
1. Contract
2. › Conditions
3. › Conditions for benefit of one party
4. › Waiver of condition by benefiting party
5. › Whether due diligence condition for sole benefit of purchaser
1. Contract
2. › Conditions
3. › Operation of condition upon expiry of stipulated period
4. › Whether contract becomes unconditional upon expiry without termination notice
1. Practice and Procedure
2. › Costs
3. › Indemnity costs
4. › Whether conduct warranted indemnity costs order

Quick Take

A due diligence condition in a land sale contract providing that the contract becomes unconditional at the end of the due diligence period is not void for uncertainty. The assessment of viability under such a condition is subjective — for the purchaser acting honestly — and the condition is for the sole benefit of the purchaser. If no termination notice is given during the due diligence period, the contract becomes unconditional and neither party may terminate on the basis of the condition.