Vendor v. Purchaser: Failure to Obtain Administrative Authorization and Contractual Nullity

A vendor sold a piece of land to a purchaser, stipulating that the sale was subject to the vendor obtaining a prerequisite administrative authorization within a specified time limit, and upon failure to obtain this authorization, the sale would be automatically voided without penalty to either party. When the authorization was not obtained within the timeframe, the vendor sought to enforce the automatic nullity, but the purchaser contended that the vendor had not demonstrated having taken all necessary steps to secure the permit, thus preventing the condition precedent from being fulfilled and arguing the vendor was responsible for the delay or failure. The court upheld the lower court's decision, reasoning that the clause established a resolutory condition, and in contracts containing such conditions, the party who was to benefit from the fulfillment of the condition, or who was responsible for ensuring its occurrence, could not invoke the failure of that condition to seek the dissolution of the contract unless they could prove they had diligently taken all necessary actions to bring about the condition's fulfillment.