› Findings not glaringly improbable or contrary to compelling inferences
Contracts
› Building, Engineering and Related Contracts
› The Contract
› Construction of Particular Contracts and Implied Conditions
› Reasonable endeavours obligation
› Scope and content
Contracts
› Building, Engineering and Related Contracts
› Performance of Work
› Remedies for Breach of Contract
› Termination
› Validity of termination where vendor in breach of reasonable endeavours obligation
Contracts
› Building, Engineering and Related Contracts
› Performance of Work
› Obligation of developer to exercise oversight of builder
› Abdication of responsibility
Quick Take
1A developer's obligation to use 'reasonable endeavours' to achieve practical completion under a sale contract is not discharged merely by engaging an apparently competent builder; the obligation is continuing and requires active oversight, communication and follow-through, and cannot be abdicated to the builder even where the building contract allocates site possession and procurement functions to the builder.
2Where a developer's breach of a reasonable endeavours obligation is causally connected to the non-satisfaction of a condition precedent that triggers a termination right, the 'substantial chance' test applies: if the developer's breach deprived the purchaser of a substantial chance that the condition would have been fulfilled, the developer is precluded from exercising the termination right.
3On the facts, expert evidence that the development could have been completed within the contractual timeframe — supported by evidence that the developer deliberately ceased negotiations on a price variation in order to terminate and re-sell at a higher profit — was capable of sustaining findings of both breach and causation.
