Ford v Perpetual Trustees Victoria Ltd

The appeal in *Ford v Perpetual Trustees Victoria Ltd* concerned a dispute over a loan and mortgage agreement. The appellant, Ms Ford, sought to set aside the contract on the grounds of non est factum and, alternatively, sought relief under the *Contracts Review Act 1980* (NSW). The respondent, Perpetual Trustees Victoria Ltd, sought to enforce the loan and mortgage. The case was heard in the Court of Appeal of New South Wales.

The primary legal issues before the court were whether Ms Ford could successfully plead non est factum, given her intellectual disability, and whether the *Contracts Review Act 1980* (NSW) applied to the transaction. The court also considered whether Ms Ford was entitled to restitution for any benefit received under the loan agreement if it was found to be void.

The Court of Appeal allowed the appeal, finding that Ms Ford could rely on the plea of non est factum. The court held that the operation of this plea concerns the true consent of the signer and that a signature is not binding if mental incapacity prevents any understanding of the document. The court also determined that the *Contracts Review Act 1980* (NSW) did not apply because the contract was found to be void on the basis of the non est factum plea. Furthermore, the court found that Ms Ford was not liable in restitution to repay funds where the loan contract was void and Perpetual Trustees Victoria Ltd had not, in substance, received a benefit from the funds.

Consequently, the Court of Appeal set aside the previous orders and entered judgment for Ms Ford in the sum of $24,857 plus interest, dismissing Perpetual Trustees Victoria Ltd's cross-claim. Ms Ford was ordered to pay the defendant's costs of the proceedings, including the cross-claim, and the respondent was ordered to pay the appellant's costs of the appeal and cross-appeal.