Conditions precedent and automatic termination: The Court applies the prevention principle
A recent Queensland Supreme Court decision highlights that a party failing to satisfy the conditions precedent for which it is responsible to meet will not be able to take advantage of its default to assert that the contract has ended. Even though the contract provided for automatic termination upon a failure to satisfy or waive the conditions precedent by a nominated date, the Court invoked the prevention principle to prevent the contractor from taking advantage of its own default to contend that absent waiver, the contract had terminated under the relevant clause.
In Veesaunt Property Syndicate 1 Pty Ltd v Alliance Building and Construction Pty …
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