Khoury v Khouri

Case [2006] NSWCA 184


Reported Decision: 66 NSWLR 241

Court of Appeal


CITATION: KHOURY & ANOR v KHOURI [2006] NSWCA 184
HEARING DATE(S): 02/05/2006
 
JUDGMENT DATE: 

14 July 2006
JUDGMENT OF: Handley JA at 1; Hodgson JA at 9; Bryson JA at 26
DECISION: Appeal allowed: see para [93]
CATCHWORDS: VENDOR and PURCHASER - agreement for sale of interest in land - no written memorandum under Conveyancing Act s.23C or s.54A - part performance by payments - brother and brother made oral agreement for sale of half interest as tenant in common held by vendor in common with sister - agreement operated as present declaration of trust - consideration whether compliance with s.23C necessary for enforcement - consideration whether compliance with s.54A necessary for enforcement - held that it is necessary - Doctrine of Part Performance considered - whether part payment to vendor and arrangement for third party to pay off mortgage for which vendor was liable constituted Part Performance - held they did not - consideration of history of Part Performance in applying Statute of Frauds - payments are not acts of Part Performance - appeal allowed.
LEGISLATION CITED: Conveyancing (Amendment) Act 1930 (NSW)
Conveyancing Act 1919 (NSW) ss.54A and 23C, 23D(1), 7(1), 23E
Law of Property Act 1925 (UK)
Statute of Frauds 1677 (England) ss.3, 4, 7, 8 and 9.
CASES CITED: Abjornsen v Urban Newspapers Ltd (1989) WAR 191
Acorn Computers Ltd v MCS Microcomputer Systems Pty Ltd (1984) 6 FCR 277
Adamson v Hayes (1973) 130 CLR 276
Australian and New Zealand Banking Group Ltd v Widin (1990) 26 FCR 21
Baloglow v Konstantinidis & Ors (2001) 11 BPR 20,721, [2001] NSWCA 451
Britain v Rossiter (1882) 11 QBD 123
Butcher v Stapely (1685) 1 Vernon 363, 23 ER 524
Cooney v Burns (1922) 30 CLR 216
Gunter v Halsey (1739) Ambler 586, 27 ER 381
Hagan v Waterhouse (1991) 34 NSWLR 308
Halloran v Minister Administering National Parks and Wildlife Act 1974 [2006] HCA 3, 80 ALJR 519
ISPT Nominees Pty Ltd v Chief Commissioner of State Revenue [2003] NSWSC 697, 53 ATR 527
JC Williamson Ltd v Lukey & Mulholland (1931) 45 CLR 282
Khouri v Khoury [2004] NSWSC 770
Last v Rosenfeld [1972] 2 NSWLR 923
Maddison v Alderson (1883) 8 App Cas 467
McBride v Sandland (1918) 25 CLR 69
Regent v Millett (1976) 133 CLR 679
Secretary, Department of Social Security v James (1990) 95 ALR 615
Steadman v Steadman [1976] AC 536
Theodore v Mistford Pty Ltd [2005] HCA 45, 79 ALJR 1503, (2005) 221 CLR 612
Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387
PARTIES: Marina Khoury - 1st Appellant
Peter Basil Khoury - 2nd Appellant
Bechara Khouri - Respondent
FILE NUMBER(S): CA 41151/2004
COUNSEL: T.G.R. Parker SC & R.E. Steele - (A)
A.J.L.Ogborne - (R)
SOLICITORS: Michie, Shehadie & Co. - (A)
Di Lizio & Associates - (R)
LOWER COURT JURISDICTION: Supreme Court - Equity Division
LOWER COURT FILE NUMBER(S): SC 4534/2002
LOWER COURT

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Khoury v Khouri [2006] NSWCA 184
Case
[2006] NSWCA 184
Decision Date

CaseChat Overview and Summary

The dispute in *Khoury v Khouri* concerned an oral agreement for the sale of a half interest in land. The vendor, Mr. Khouri, agreed to sell his half interest as a tenant in common to his brother, the purchaser. The land was held by Mr. Khouri in common with their sister. The purchaser sought to enforce this oral agreement. The case was heard in the Court of Appeal of New South Wales.

The primary legal issues before the court were whether the oral agreement for the sale of an interest in land was enforceable despite not being in writing, and whether the doctrine of part performance could be invoked to overcome the absence of a written memorandum. Specifically, the court had to consider the requirements of section 23C and section 54A of the *Conveyancing Act 1919* (NSW) and whether certain actions by the purchaser constituted sufficient part performance to render the oral agreement enforceable.

The Court of Appeal held that compliance with section 54A of the *Conveyancing Act 1919* (NSW) was necessary for the enforcement of an agreement for the sale of an interest in land, even if it was an agreement to create a trust. The court examined the historical development of the doctrine of part performance in relation to the Statute of Frauds and its statutory successors. It concluded that payments made by the purchaser towards the purchase price, and an arrangement for a third party to pay off a mortgage for which the vendor was liable, did not constitute sufficient acts of part performance. These actions were not unequivocally referable to the alleged oral agreement for the sale of the land interest.

Consequently, the appeal was allowed.

Orders

Orders of the court

Appeal allowed: see para [93]

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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