Read the full judgment text of HCA 002738/1975 on BabelCite. This High Court CFI judgment was delivered on 3 December 1977 before Li, J..
Contract law – frustration – sale and purchase of flats – University Heights, 12 Babington Path – Clause 3 providing for completion within 18 months and interest at 1% per month on delay – Clause 12 making time of the essence – Clause 22 entitling vendor to rescind 'forthwith' and refund instalments without interest on unforeseen circumstances rendering performance impossible – whether Clause 22 governs so as to exclude the doctrine of frustration – Po Shan Road landslip of 18 June 1972 as unforeseeable natural disaster – defendant barred from site for months and required to undertake extensive soil tests, slope stabilisation, underpinning and caisson works before renewed consent in November 1976 – defendant waited over three years before purporting to rescind – whether agreements frustrated – true construction of contract under Davis Contractors Ltd v Fareham UDC – whether parties had provided by apt words for the contingency – Hirji Mulji v Cheong Yue Steamship – Metropolitan Water Board v Dick, Kerr – Amalgamated Investment & Property Co Ltd v John Walker & Sons – agreement partly for sale of land and partly for building works – whether specific performance appropriate – vendor still registered owner – apartments not sold to others – contractor an associate company of vendor – supervision of the court not required – Specific performance ordered; counterclaim dismissed; interest to be assessed by Registrar.
Legal issues: Whether the sale and purchase agreements were frustrated by the Po Shan Road landslip of 18 June 1972 · Whether specific performance should be ordered in respect of the agreements
Outcome: Judgment for the plaintiffs in both actions. Agreements held not to be frustrated. Specific performance ordered in Action No. 2739 of 1975. Defendant's counterclaim dismissed in both actions.