JANSSEN & JANSSEN

In *Janssen & Janssen*, the Supreme Court of New South Wales was asked to determine whether a company, Janssen & Janssen Pty Ltd, was entitled to recover from the defendant, Mr. John Janssen, the sum of $10,000 which had been paid to him by the company. The dispute arose from an agreement between the parties concerning the sale of shares in the company.

The primary legal issue before the Court was whether the payment of $10,000 by the company to Mr. Janssen constituted a loan or a gift. If it was a loan, the company would be entitled to its repayment. If it was a gift, the company would have no legal basis to recover the money.

McClelland J found that the evidence did not support the contention that the $10,000 was a loan. He reasoned that there was no agreement for repayment, no interest was charged, and no security was taken. Furthermore, the company's articles of association did not appear to authorise the making of loans. Consequently, his Honour concluded that the payment was intended as a gift, and therefore, the company was not entitled to recover the sum.