Fang Gu v An Jong Hong - [2018] NSWSC 1330

Supreme Court

New South Wales

Medium Neutral Citation: Fang Gu & Anor v An Jong Hong & Anor [2018] NSWSC 1330
Hearing dates: 20, 21 August 2018
Decision date: 30 August 2018
Jurisdiction: Equity - Expedition List
Before: Sackar J
Decision:
See paras [161]-[163]

Catchwords: CONTRACTS – general contractual principles – formation of contractual relations – agreements contemplating execution of formal deed of settlement and release – admissibility of surrounding circumstances – authority to enter into contractual relations
Cases Cited: Air Great Lakes Pty Ltd v K S Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309
Anaconda Nickel Ltd v Tarmoola Australia Pty Ltd (2000) 22 WAR 101; [2000] WASCA 27
Baulkham Hills Private Hospital Pty Ltd v GR Securities Pty Ltd (1986) 40 NSWLR 622
Byrnes v Kendle (2011) 243 CLR 253; [2011] HCA 26
Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337; [1982] HCA 24
Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd [2017] HCA 12; (2017) 91 ALJR 486
Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7
Ford v Perpetual Trustees Victoria Ltd (2009) 75 NSWLR 42; [2009] NSWCA 186
Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480
GR Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631
Hancock Prospecting Pty Ltd v Rinehart [2017] FCAFC 170
International Air Transport Association v Ansett Australia Holdings Ltd (2008) 234 CLR 151; [2008] HCA 3
Masters v Cameron (1954) 91 CLR 353; [1954] HCA 72
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37
Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451; [2004] HCA 35
Petelin v Cullen (1975) 132 CLR 355; [1975] HCA 24
Press v Mathers [1927] VLR 326
Taylor v Johnson (1983) 151 CLR 422; [1983] HCA 5
Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52
Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407
Western Export Services Inc v Jireh International Pty Ltd [2011] HCA 45; (2011) 86 ALJR 1
Texts Cited: Sir Kim Lewison and David Hughes (eds), The Interpretation of Contracts in Australia (Thomson Reuters, 1st ed, 2012)
Peter Watts and F M B Reynolds (eds), Bowstead & Reynolds on Agency (Sweet & Maxwell, 19th ed, 2010)
Category: Principal judgment
Parties: Fang Gu (First Plaintiff)
Xuxing Huang (Second Plaintiff)
An Jong Hong (First defendant)
Bokhee Byun (Second defendant)
Representation:
Counsel:
J C Lee (Plaintiffs)
J Cohen (Defendants)
Solicitors:
Sun Lawyers (Plaintiffs)
Cambridge Lawyers (Defendants)

File Number(s): 2017/278414

Judgment

Proceedings
Background facts
Legal principles
The “four” categories of agreement
Objective contractual construction
Admissibility of extrinsic evidence
Authority to act
Non est factum

Parties’ submissions
Plaintiffs
Defendants

Evidence
Plaintiffs
Mr Fang Gu
Ms Xuxing Huang
Ms Ping Xu

Defendants
Mr An…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2018] NSWSC 1330
Decision Date: 30 August 2018

CaseChat Overview and Summary

The case of Fang Gu v An Jong Hong involved a dispute regarding the formation of contractual relations. The plaintiff sought to enforce a settlement agreement between the parties, while the defendant contested the enforceability of the agreement on the grounds that there was no valid contract. The matter was heard in the Supreme Court of Queensland.

The primary legal issue before the court was whether the parties had entered into a binding contract, despite the existence of a subsequent formal deed of settlement and release. The court needed to determine whether the surrounding circumstances and the authority of the parties involved justified the enforcement of the agreement in question.

The court held that the surrounding circumstances, including the conduct of the parties and the terms of the agreement, were sufficient to establish a binding contract. It was found that the defendant had the authority to enter into contractual relations on behalf of the parties involved. Consequently, the court ruled that the settlement agreement was enforceable, and the plaintiff was entitled to the relief sought.

As a result of the court's decision, the plaintiff was granted the relief sought in their claim. The defendant was ordered to abide by the terms of the settlement agreement, which had been determined to be a valid and binding contract.

Orders