Facts: Perri agreed to buy a property in Cronulla from Coolangatta Investments (CI). The performance of this contract was made subject to the condition that Perri should first sell a property in Lilli Pilli that he owned. When Perri failed to sell his property within a reasonable time, CI alleged a breach of contract.
Issue: Was Perri in breach of a contract that existed between himself and CI?
Decision: Perri was in breach of a contract that had been created between himself and CI.
Reason: Mason J (at 552) said that courts should prefer to construe a condition as merely a condition for performance, rather than a condition precedent to the formation of a contract, "unless the contract read as a whole plainly compels this conclusion". In the present case it was only performance of the contract that was made conditional, rather than the completion of the contract itself; the contract had therefore come into existence.