Karlovasitis v Link Property Services Pty Ltd
Case
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[2018] FCCA 1803
•17 July 2018
Details
AGLC
Case
Decision Date
Karlovasitis v Link Property Services Pty Ltd [2018] FCCA 1803
[2018] FCCA 1803
17 July 2018
CaseChat Overview and Summary
This case concerned a dispute between John Karlovasitis (the applicant) and Link Property Services Pty Ltd (the respondent) before Judge Altobelli in the Local Court of New South Wales. The applicant alleged that the respondent had breached their employment agreement by failing to pay him commission. The respondent contended that the applicant's remuneration package had been varied by a letter dated 25 June 2015, which increased his total remuneration and that this variation was accepted by the applicant.
The primary legal issues before the court were whether the letter dated 25 June 2015 constituted a valid variation of the original employment agreement, and if so, whether there was sufficient consideration for this variation. The court also considered the relevant clauses of the Real Estate Industry Award 2010, specifically those pertaining to written agreements for commission, bonus, or incentive payments and the general requirements for written agreements.
Judge Altobelli found that the letter dated 25 June 2015 effectively varied the original agreement. Despite the applicant not signing the letter, the court accepted his evidence that he considered the variation and accepted it, noting that he had taken the benefit of the increased remuneration package. The court determined that there was valid consideration for the variation, as both parties obtained a benefit: the applicant received an increased remuneration package, and the respondent benefited from the applicant's continued efforts in achieving the firm's goals. The court distinguished the present situation from the case relied upon by the applicant, finding that consideration was plainly evident. The court's reasoning focused on the mutual acceptance of the varied terms and the exchange of benefits.
The court ordered that the applicant's claim for commission was dismissed.
The primary legal issues before the court were whether the letter dated 25 June 2015 constituted a valid variation of the original employment agreement, and if so, whether there was sufficient consideration for this variation. The court also considered the relevant clauses of the Real Estate Industry Award 2010, specifically those pertaining to written agreements for commission, bonus, or incentive payments and the general requirements for written agreements.
Judge Altobelli found that the letter dated 25 June 2015 effectively varied the original agreement. Despite the applicant not signing the letter, the court accepted his evidence that he considered the variation and accepted it, noting that he had taken the benefit of the increased remuneration package. The court determined that there was valid consideration for the variation, as both parties obtained a benefit: the applicant received an increased remuneration package, and the respondent benefited from the applicant's continued efforts in achieving the firm's goals. The court distinguished the present situation from the case relied upon by the applicant, finding that consideration was plainly evident. The court's reasoning focused on the mutual acceptance of the varied terms and the exchange of benefits.
The court ordered that the applicant's claim for commission was dismissed.
Details
Key Legal Topics
Areas of Law
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Contract Law
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Employment Law
Legal Concepts
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Breach
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Contract Formation
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Offer and Acceptance
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Remedies
Actions
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Most Recent Citation
Karlovasitis v Link Property Services Pty Ltd (No.2) [2018] FCCA 2848