GE Commercial Corp (Aust) Pty Ltd v Murdica

GE Commercial Corp (Aust) Pty Ltd, the plaintiff, sought relief against Murdica, the defendant, for specific performance of an agreement to provide legal mortgages as security for loans. The matter was heard in the Supreme Court of New South Wales. The primary issue for the court was whether the guarantors had indeed agreed to provide mortgages as security in a registrable form, as stipulated in the contract. The court needed to determine if the guarantors' agreement was sufficiently clear and specific to warrant specific performance.

The court examined the language of the agreements and the surrounding circumstances to ascertain the intentions of the parties. It found that the agreements were explicit and unambiguous in requiring the guarantors to provide mortgages in a registrable form. The court emphasised that the requirement for registrable form was crucial, as it ensured the security was binding and enforceable against third parties. Given the clear terms of the agreements and the guarantors' unequivocal consent, the court concluded that specific performance was the appropriate remedy.

Consequently, the court ruled in favour of the plaintiff, granting specific performance of the agreements. The court ordered the guarantors to execute and register legal mortgages over their respective properties within a specified timeframe. The decision underscored the importance of clear contractual terms and the enforceability of registrable security agreements in commercial transactions.