Interco Pty Ltd v Schiavello Systems (NSW) Pty Ltd

Interco Pty Ltd sought a declaration from the court that it was not liable to pay Schiavello Systems (NSW) Pty Ltd an additional $46,875 under a provisional contract to provide software development services. The dispute arose from a disagreement about the final contract after work had been completed. Interco argued that the final contract was not binding as it was submitted after the work was done. The matter was heard in the Supreme Court of New South Wales.

The court had to determine whether the final contract was binding and whether Interco was liable to pay the additional amount claimed by Schiavello. The court examined the timeline of events and the legal effect of the provisional contract. It had to consider whether the submission of the final contract after work had been completed affected its enforceability.

The court held that the provisional contract prevailed as the final contract was submitted after the work was completed. The court noted that the law is clear that a contract submitted after work is done is too late and cannot be enforced. The court found that there was no genuine dispute that the final contract was submitted after work had been completed and that Interco was not liable to pay the additional amount claimed by Schiavello. The court dismissed Schiavello's application to set aside the statutory demand.

The court ordered that Interco was not liable to pay the additional amount claimed by Schiavello and that the statutory demand remain in force. The court also ordered that Schiavello pay Interco's costs of the application. The decision highlights the importance of timely submission of final contracts to ensure their enforceability.