In Riddle v White Constructions Pty Ltd  NSWSC 384, a contract concerned the sale of a lot in a proposed subdivision. After the contract had been entered into with the purchaser, the vendor realised that an additional lot of land needed to be purchased to achieve registration of the subdivision. The vendor later included this additional lot of land in the contract for sale to the purchaser. However, the purchaser refused to purchase this additional lot, arguing that they were under no obligation to do so. The vendor served a notice to complete the purchase of both lots, and later terminated the contract.
The Court held that under the terms of the contract the purchaser was bound to purchase only one of the lots. The fact that the vendor had to acquire the additional lot to achieve registration of the subdivision plan did not entitle the vendor to add this additional lot into the contract for sale. The Court held that the vendor wrongfully terminated the contract and ordered that the deposit be returned to the purchaser. Read more