Where a standard Real Estate Institute contract for the sale of residential property contains a subject-to-finance clause, the failure of either party to terminate the contract after the finance deadline does not render the contract unconditional. The contract remains conditional, and the vendor's entitlement to damages is limited to circumstances where the purchaser has failed to use best endeavours to obtain finance. Suttor v Gundowda (1950) 81 CLR 418 does not support the proposition that non-exercise of a right to terminate converts a conditional contract into an unconditional one where the condition has not been fulfilled.
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