After much time looking for a house to buy, Jackson believes he has finally found something he likes. Having complied with all the relevant requirements imposed by the legislation, including building reports, Jackson is ready to proceed to settlement with the property in Amaroo.
Meghan, the current owner, agrees to sell her house to Jackson under an agreement which provides that:
a. The sale is to be completed by no later than 30 November 2015;
b. The house is to be certified clear of termites by Meghan prior to the date the sale is completed;
c. The total price is to be $800,000; and
d. The sale is conditional on Jackson’s finance being approved by the Commonwealth Bank.
On 25 November 2015, Jackson’s solicitor contacts Meghan and advise her that there is likely to be a delay in settling the contract, as although the finance has been approved by the Commonwealth bank, it will not be available until the first day of the next month, that is 1 December 2015 (the day following the scheduled completion date).
In the meantime, Meghan has been unable to have the house checked for termites and will not, as a result be able to complete her own obligations under the contract. She decides not to say anything at all to Jackson or his solicitor.
On 27 November 2015, Meghan receives an offer of $950,000 for her house from Ruben, who inspected the house and liked it in early October. Ruben tells Meghan he likes the house so much that he is prepared to offer her an immediate cash settlement.
In view of her recent phone conversation with Jackson’s solicitor, Meghan phones Jackson’s solicitor and advises him that the sale is off, citing anticipation of a breach by Jackson (considering that he would fail to comply with the specified terms of the agreement) as grounds.
Without further delays, Meghan instructs her solicitor to complete the sale to Ruben immediately.
When Jackson learns that Meghan has sold the house without waiting until settlement he is very angry and upset. He realises that Meghan’s action has a number of personal implications – Jackson was relying on the purchase to sell his own property.
Jackson approaches you to seek advice as to what rights if any, he may have against Meghan, including any compensation which may be involved. Jackson is uncertain if he is able to take any action against Ruben, and would like you to advise him on this point also.