Abbey & Crowne (No 2)

In *Abbey & Crowne (No 2)*, the parties were Abbey and Crowne, and the dispute concerned the interpretation and enforceability of a settlement agreement. The matter came before Tree J in the Supreme Court of Victoria.

The central legal issue before the court was whether the settlement agreement, which had been reached in prior proceedings, was valid and binding, or whether it was vitiated by a fundamental misunderstanding between the parties regarding its terms. Specifically, the court had to determine if there was a sufficient meeting of the minds to constitute a valid contract.

Tree J reasoned that for a settlement agreement to be enforceable, there must be a clear and unequivocal agreement on all essential terms. His Honour found that the evidence demonstrated a significant divergence in the parties' understanding of a crucial aspect of the settlement, meaning there was no true consensus. Consequently, the court concluded that no binding contract had been formed.

The court therefore ordered that the settlement agreement was not binding on the parties.