Court of Appeal
Supreme Court
New South Wales
Medium Neutral Citation: Frumar v Guilfoyle Developments Pty Limited [2014] NSWCA 225 Hearing dates: 4 February 2014 Decision date: 15 July 2014 Before: Beazley P at [1];
Emmett JA at [101];
Bergin CJ in Eq at [109]Decision: Appeal dismissed with costs.
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]
Catchwords: CONTRACTS - Variation of contractual relations - whether variation partly written and partly oral - whether variation written only - whether terms agreed
CONTRACTS - Variation of contractual relations - Agreements contemplating execution of formal document - Masters v Cameron
APPEAL - Interference with judge's findings of fact - where findings based on credibility of witnessCases Cited: Brambles v Holdings Ltd v Bathurst City Council [2001] NSWCA 61; 53 NSWLR 153
Eccles v Bryant [1948] Ch 93
Masters v Cameron [1954] HCA 72; 91 CLR 353Category: Principal judgment Parties: Geoffrey Craig Frumar (Appellant)
Guilfoyle Developments Pty Limited (Respondent)Representation: Counsel:
G A Sirtes SC; J P Knackstredt (Appellant)
M B J Lee SC; W V McManus (Respondent)
Solicitors:
Geoffrey C Frumar & Associates (Appellant)
Harris Freidman (Respondent)
File Number(s): CA 2012/391409 Decision under appeal
- Jurisdiction:
- 9111
- Citation:
- Guilfoyle Developments Pty Ltd v Geoffrey Craig Frumar [2012] NSWSC 859; [2012] NSWSC 1455
- Date of Decision:
- 2012-12-10 00:00:00
- Before:
- Nicholas J
- File Number(s):
- 2011/377547
HEADNOTE
[This headnote is not to be read as part of the judgment]
On 20 November 2009, the appellant entered into a contract with the respondent for the purchase "off-the-plan" of a strata unit for $3.3 million (the contract). The respondent brought proceedings against the appellant claiming damages for breach of contract for failing to complete the contract pursuant to a notice given by the respondent. Nicholas J found in favour of the respondent, and awarded damages in the sum of $158,833.97 by way of liquidated damages.
The appellant appealed from his Honour's decision. At first instance and on appeal, the appellant pleaded that the parties had agreed to vary the contract in two respects. First, the appellant alleged that the completion date of the contract was extended to 30 April 2012 unconditionally (the first variation). Secondly, the appellant alleged that in consideration of waiving his right to rescind the contract pursuant to cl 40, the respondent had agreed to carry out additional fit-out works to the unit (the second variation).
The Court of Appeal dismissed the appeal.
Held by Beazley P (Emmett JA and Bergin CJ in Eq agreeing):
In respect of the first variation:
(1) The parties had reached an agreement to vary the contract by extending the sunset date and amending…
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- Case
- [2014] NSWCA 225
- Decision Date
CaseChat Overview and Summary
The central legal issues before the court were whether a variation to the contract had been validly agreed upon, and if so, whether that variation was partly written and partly oral, or entirely written. The court also considered whether the agreement contemplated the execution of a formal document, referencing the principles established in *Masters v Cameron*. Furthermore, the appeal involved an examination of whether the primary judge's findings of fact, which were based on the credibility of a witness, should be interfered with.
The Court of Appeal dismissed the appeal, upholding the primary judge's findings. The reasoning involved a careful consideration of the evidence presented, particularly concerning the oral communications between the parties and the extent to which they constituted a binding variation of the contract. The court applied established principles of contract law relating to the formation and variation of agreements, including the requirement for clear agreement on essential terms and the implications of agreements that contemplate the execution of a formal document. The court found no error in the primary judge's assessment of witness credibility, which underpinned the factual findings.
The appeal was dismissed with costs.
Orders
Orders of the court
Appeal dismissed with costs.
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
Established by: BERGIN CJ
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