Section 134(3) of the Retirement Villages Act 1999 (NSW) requires a two-stage process: first, satisfaction that the breach justifies termination; second, a separate discretionary decision whether to terminate. The circumstances relevant to the discretion may extend beyond those relevant to the precondition, including personal financial consequences to the resident such as loss of a premium. However, a District Court's error in failing to identify a Tribunal's error of law does not ordinarily constitute jurisdictional error of the District Court, following Craig v South Australia. Arguments must be raised with sufficient clarity in the court below to be relied upon in supervisory proceedings.
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