Blackley Investments Pty Ltd v Burnie City Council (No 2)

Blackley Investments Pty Ltd appealed to the Full Court of the Supreme Court of Tasmania against a judgment concerning a contract for the sale of land. The dispute arose from the vendor's (Burnie City Council) mistaken belief that the contract was conditional upon obtaining rezoning approval, a mistake of which the purchaser (Blackley Investments) was aware and did not correct.

The central legal issue before the Full Court was whether the vendor was entitled to rescission of the contract based on a unilateral mistake, where the purchaser had knowledge of the vendor's mistake and failed to disclose it. The Court was required to consider the principles of equity, particularly concerning equitable remedies like rescission, in the context of a unilateral mistake in contract formation.

The Full Court allowed the appeal, reasoning that the purchaser's knowledge of the vendor's unilateral mistake and its failure to correct that mistake amounted to unconscionable conduct. This unconscionability, in the Court's view, justified equitable intervention. The Court set aside the previous judgments on both the claim and the counterclaim, ordering that judgment be entered for the appellant (Blackley Investments) for damages to be assessed. The counterclaim was dismissed.