Consolidated Credit Network Pty Limited v Sonenco Apartments Pty Limited

Consolidated Credit Network Pty Limited, the plaintiff, brought an action against Sonenco Apartments Pty Limited, the defendant, before the Federal Court of Australia. The dispute centred on a contract between the parties for the marketing of residential units. The contract stipulated a fixed price for the units and obligated the marketing company to purchase any unsold units. When the marketing company engaged agents to facilitate sales and encountered purchasers, the developer, Sonenco, refused to complete the contracts. The plaintiff sought specific performance of the contract, arguing that the developer's refusal to honour the contracts was a breach.

The court was required to determine whether specific performance should be ordered in favour of the marketing company. Key issues included the nature of the contract, the marketing company's reliance on its business reputation and network of agents, and whether damages would be an adequate remedy. The court had to balance the developer's right to refuse certain contracts against the marketing company's reliance on the terms of the contract, which included the promise to purchase unsold units.

The court found in favour of the marketing company, ordering specific performance. It held that the marketing company had substantially performed its obligations and had relied on its business reputation and network of agents. The court determined that damages would not be a sufficient remedy due to the unique nature of the contract and the marketing company's significant investment in its reputation and network. The developer's refusal to complete contracts with purchasers found by the marketing company's agents constituted a breach of contract, warranting specific performance.