Global Alliance Network Pty Ltd v Sensis Pty Ltd

The New South Wales Court of Appeal considered a dispute between Global Alliance Network Pty Ltd (appellant) and Sensis Pty Ltd (respondent) concerning oral variations to standard form advertising contracts. The core of the disagreement revolved around whether certain communications constituted acceptance of advertising proofs and, consequently, a binding agreement for advertising services.

The court was tasked with determining whether an oral agreement, which stipulated a condition precedent of receiving a "go ahead" before advertising proofs were accepted, had been met. Specifically, the court had to decide if the statement "will confirm others later" made upon accepting one set of proofs amounted to a "go ahead" for other outstanding proofs, and whether silence after receiving further proofs could be construed as acceptance. Additionally, the court examined whether admissions made in an initial defence to a cross-claim could be relied upon as informal admissions even after an amended defence was filed without objection.

The Court of Appeal found that the statement "will confirm others later" did not constitute a "go ahead" for the remaining advertising proofs, as there was no agreement on the nature of the "go ahead" required. Similarly, silence after receiving proofs was not deemed sufficient to establish acceptance in the absence of a clear agreement to that effect. The court also held that admissions in a superseded defence could operate as informal admissions.

Consequently, the appeal was allowed in part, with the court setting aside certain orders made by the District Court and ordering the appellant to pay the respondent a specific sum. The court also made detailed orders regarding the costs of both the District Court proceedings and the appeal, including provisions for a certificate under the Suitor's Fund Act and liberty to apply for variations based on Calderbank offers.