Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service

(2010) 383 ALR 577; [2010] NSWCA 268

NSW Court of Appeal

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Interrogate

Catchwords

1. Contract
2. › Good faith obligations
3. › Express obligation of utmost good faith
4. › Content and scope of obligation
5. › Whether obligation requires co-operation, honest standards, and reasonable conduct
6. › Whether obligation requires disclosure of planning processes affecting counterparty's interests
1. Contract
2. › Damages
3. › Expectation and reliance damages
4. › Readiness willingness and ability to perform
5. › Whether plaintiff must prove capacity for substantial performance to recover damages for breach
1. Landlord and Tenant
2. › Re-entry and forfeiture
3. › Requirements of notice under s 129 of Conveyancing Act 1919 (NSW)
4. › Whether notice must specify what lessor requires lessee to do
5. › Whether s 129 applies to essential breach or repudiation
6. › Meaning of 'rent' in s 129(8)
7. › Conveyancing Act 1919 (NSW), ss 7, 129
1. Landlord and Tenant
2. › Re-entry and forfeiture
3. › Validity of notice of default
4. › Whether amounts payable under Car Park Lease and Construction Deed constituted 'rent'
5. › Whether notice conveyed what lessee needed to do to avoid forfeiture
6. › Conveyancing Act 1919 (NSW), s 129

Quick Take

Section 129 of the Conveyancing Act 1919 (NSW) applies to all breaches of covenant including essential breaches and repudiation, and a notice under s 129 must specify what the lessee needs to do to avoid forfeiture; the English decision in Escalus Properties v Robinson on the meaning of 'rent' in equivalent legislation is disapproved.