Ground 10: The Plaintiffs did not claim the Condition Precedent in their Defence. However, the Judge submitted this Defence for them. However, the Judge did not submit the Condition Precedent for the Defendant. The Plaintiffs were to settle this Contract on 1 November 1989 before the Defendant had to vacate the premises on 8 December 1989.
16 The references to a condition precedent are explained by the use of those words in Young J's reasons. The appellant's complaint was that giving vacant possession by the appellant was not a condition precedent to payment of the $157,500 by the respondents. The respondents were obliged to complete, relevantly to pay the $157,500, on 1 November 1989. The appellant was obliged to give vacant possession on 8 December 1989. The respondents had to complete even if there was a real risk that they would not get vacant possession in accordance with the contract no later than 8 December 1989, because performance of their obligation was not subject to performance yet to come of the appellant's obligation. Therefore the allegation of breach had been made out.
17 Two matters should be mentioned, in order to put them aside. First, it was not suggested on the appeal that there was any significance in the contract providing for vacant possession subject to a right of occupancy under licence. The licence was treated as entitling the appellant to possession of the property. Secondly, in order that the right to occupy the premises under licence arise the appellant had to elect by written notice to the respondents' solicitors prior to completion, but there was no evidence of a written notice prior to 1 November 1989. The respondents sought to rely on this in the appeal, but I do not think they should be permitted to do so. It is clear that they knew prior to 1 November 1989 that the appellant wished and intended to remain in possession of the property until at least 8 December 1989, and at the trial the respondents did not dispute that she had had an entitlement to possession until that date.
18 It was for the appellant to establish that, in the events that happened, the respondents were obliged to complete the contract, relevantly by payment of the $157,500, on 1 November 1989. In a contract for the sale of land the contractual obligations of the parties to complete the sale "are concurrent and conditional in the sense that the vendor is not obliged to convey the land and the purchaser is not obliged to pay the purchase price otherwise than upon concurrent performance by the other party": Foran v Wight (1989) 168 CLR 385 at 433 per Deane J. Young J held that the respondents were not obliged to complete on 1 November 1989 because the appellant was herself in breach of a concurrent obligation "to complete by herself complying with the contract", the non-compliance on her part being that she had made known a risk that she would not give up possession on 8 December 1989. The factual finding was well open to his Honour, but it may be that the legal result did not follow.
19 There is some ambiguity in his Honour's references to the appellant being without blame and herself complying with the contract. On one view, a statement by the appellant as at 1 November 1989 that she would not give up possession on 8 December 1989 would have been an anticipatory breach, of a contractual obligation to be performed on 8 December 1989, for which the respondents might have been able to terminate the contract. But if the respondents did not terminate the contract, and in the present case they did not, it would have remained on foot, to be performed by both parties. The concurrent and conditional obligations to be performed on 1 November 1989 would have remained, and could have been performed, and it would not have mattered that future breach of an obligation to be performed by the appellant on 8 December 1989 was foreseen - she might have changed her mind by that date. On that view, the respondents were obliged to complete on 1 November 1989 even though the appellant had made known a risk that she would not give up possession on 8 December 1989.
20 In the absence of proper adversarial argument, I would prefer not to adopt Young J's path to the legal result. In my opinion, his Honour's conclusion was correct for different reasons.
21 The obligations to complete the sale being concurrent and conditional, if one of the parties to a contract for the sale of land makes known to the other that he will not perform his obligation, the other party does not have to perform the other party's obligation. It is sufficient to refer again to Foran v Wight, where this is put in a number of ways.
22 Mason CJ said (at 396) that a party may be excused or absolved from performance of his concurrent obligation by conduct on the part of the other party amounting to a waiver or dispensation with performance. Brennan J said (at 417) that if one party intimates to the other that it is useless for the other to fulfil his obligation and the other acts on the intimation, the party to whom the intimation is given is dispensed from a nugatory tender of performance. His Honour later (at 427) repeated this in similar language, when referring also to whether the failure of the intimating party to perform the contract can be treated as a breach of contract: that does not arise in the present case.
23 The discussion by Deane J (at 433-4) is less easily summarised, but the principle applied (at 434-5) was that, where the vendors had unequivocally said that they would not complete the contract until after the stipulated date, it necessarily conveyed to the purchasers that it would be pointless for them to trouble to perform their obligation; the purchasers having acted on the faith of the intimation that performance within the stipulated time would be futile and was unnecessary, the vendors would not be allowed to say that they were in breach of contract.
24 Dawson J said (at 451) that the purchasers were entitled to rely upon the intimation by the vendors that they could not settle within the contractual time and the implied intimation that it would be useless for the purchasers to attempt to do so, as absolving them from tendering the purchase price within that time. Gaudron J said (at 456) that when one party to a contract intimates to the other that the latter's performance of a contractual obligation will be futile the latter is not required to tender performance of that obligation; thus following an intimation by one party that a tender of settlement of a contract for sale of land will be futile, the failure of the other party to tender settlement at the time made essential will not put that party in breach of his obligation.
25 Accordingly, if the appellant did not just make known a risk that she would not give up possession on 8 December 1989, but made known that she would not complete the contract on 1 November 1989 unless she did not have to give up possession on 8 December 1989 and could remain in possession of the property for some time thereafter, the respondents did not have to pay the $157,500 on 1 November 1989. The respondents were not obliged to give the appellant longer possession of the property. If there was an "intimation" that it would be pointless for them to complete the contract for their part because, unless they agreed to give the appellant longer possession of the property, the appellant would not complete the contract, and they acted on the intimation, then they were absolved from performance of their obligation to complete by payment of the balance of the purchase price. The respondents submitted, within a notice of contention, that the facts led inevitably to this result.
26 The evidence was sparse, but in my view the respondents' submission should be accepted.
27 As I have said, the deposit was to be invested in a way stated in the contract. Apparently responding to a request that the deposit be released to the appellant, by a letter dated 26 September 1989 the respondents' solicitors wrote to the appellant's solicitors -
"We refer to your letter dated 21 September, 1989.
We do not understand your point that there may be a trade-off by virtue of our client releasing the deposit to your client, to assist us getting vacant possession by the 8 December as your client only has licence to occupy the premises until 8 December and vacant possession will be required by such date in any event.
Notwithstanding the foregoing our client is prepared to release the deposit to your client provided that interest is paid to our client, which would otherwise have been paid had the deposit been held in trust, at a rate of 16%".