Event and Time
Event Description
The proceedings commenced on 17 April 2020, initiated by BP7 Pty Ltd for declaratory relief regarding 14 contracts for the sale of land involving strata lots in Cronulla. The case arose from the exercise of put options granted to the defendants by the plaintiff. The plaintiff sought to rescind the contracts during the cooling-off period as stipulated by the Conveyancing Act 1919 (NSW).
Application and Claims
- The plaintiff claimed valid rescission of contracts under s 66U of the Conveyancing Act 1919 (NSW) and sought refunds for call option fees paid, less a forfeited amount of 0.25% of the purchase price.
- The defendants disclaimed the plaintiff's rescission rights and counterclaimed for either specific performance of the contracts or the retention of the call option fees, citing the validity of the contracts.
Judicial Decisions
The Court decided to separate two questions for determination: 1. Whether the plaintiff validly rescinded the sale contracts. 2. Whether the plaintiff was entitled to refunds of the call option fees less the forfeited amount.
The matter settled between the plaintiff and defendants before the hearing, leading to the filing of a Notice of Discontinuance.
Dispute Points and Legal Basis
Dispute Points
- Plaintiff's Claims:
- Valid rescission of contracts during the statutory cooling-off period. - Right to a refund of call option fees paid, less the forfeited amount.
- Defendants' Arguments:
- Contest the validity of the rescission under s 66U, asserting that the plaintiff did not exercise the right properly. - Counterclaims for specific performance of contracts or the right to retain call option fees based on the terms of the agreements.