Drafting of Contracts and Special Conditions

In a recent Qld Supreme Court case delivered on 27 May 2020, the importance of having contract terms and conditions carefully drafted in contracts of sale to avoid ambiguity was highlighted. A buyer attempted to terminate a contract prematurely after the seller supposedly failed to comply with a special condition of the contract of sale in relation to the giving of a pool safety certificate by a due date. Contracts of sale commonly include special conditions by which, usually a seller, must provide a pool safety certificate prior to settlement. As to whether a party has complied, and whether a buyer in this case, could terminate, all came down to the wording of the condition. The buyer attempted to terminate at 5.03pm on the due date and the certificate was provided by the seller at 6.31pm.  The seller won and the buyer was forced to effect settlement of the purchase of a property over $1.8Million and many costs later. This was because the condition did not include nor specify a time on the due date by which the certificate was to be provided, therefore the court agreed with the seller that they had until midnight on that date to provide the certificate. The case once again highlights the importance of seller and buyers having their lawyers review contracts before they sign. Agents are not lawyers and whilst they play an important role in the transaction, are not skilled in the drafting of special conditions. At Priala Legal we always take the time to review contracts for our clients BEFORE they sign, and provide our advice which is essential. 



Posted By Despina Priala
Despina Priala has practised in property and commercial law on the Gold Coast for over 25 years and has extensive experience in this area.

Updated : 4th June 2020 | Words : 268 | Views : 104

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