McFarlane v Reffold

[2013] SASCFC 31

South Australia Full Court

Built by Barristers,
For Australian Law.

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Interrogate

Catchwords

1. Conveyancing
2. › Contract for sale of land
3. › Conditions of sale
4. › Warranty as to approval of improvements
5. › Whether warranty is a term 'to be performed by the vendor'
6. › Whether breach of warranty precludes vendor from claiming interest for delayed settlement
1. Conveyancing
2. › From contract to completion
3. › Purchase money
4. › Interest on purchase money
5. › Effect of delay
6. › Whether vendor in default precluding entitlement to interest
1. Conveyancing
2. › Breach of contract for sale and remedies
3. › Vendor's remedies
4. › Rescission or termination
5. › Entitlement to terminate after service of notice to complete
6. › Whether purchaser's failure to pay disputed interest constituted breach
1. Contract
2. › General contractual principles
3. › Construction
4. › Meaning of 'observance or performance'
5. › Whether warranty constitutes obligation to be 'observed or performed'
6. › Distinction between warranty and executory obligation

Quick Take

A vendor's warranty in a standard form land sale contract that improvements have been erected with all necessary consents and approvals is not a term 'to be performed by the vendor' within the meaning of default clauses regulating interest and termination rights. Such a warranty sounds in damages if the warranted state of affairs proves false, but does not constitute a 'default' by the vendor that would preclude the vendor from claiming interest for delayed settlement or exercising termination rights under the contract.