Khoury v Khouri

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.