Krahe v Manfate Pty Ltd

Krahe (the appellant) brought proceedings against Manfate Pty Ltd (the respondent) concerning an alleged oral contract for building works. The dispute centred on whether a statement of price made by the appellant constituted a fixed quote or merely an estimate, and the nature of the contractual relationship between the parties. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether the primary judge had erred in admitting evidence of prior dealings between the parties, in assessing the credibility of the appellant's evidence and interpreting their affidavit evidence, and in concluding that a contract giving rise to the dispute had been formed, to the detriment of the appellant.

The Court of Appeal found no error in the primary judge's decision. It reasoned that the primary judge was entitled to consider the parties' past dealings, which indicated a history of informal, trusting, and flexible contractual relationships. This context was relevant to interpreting the nature of the price statement and assessing the credibility of the appellant's evidence. The primary judge's assessment of the evidence led to the conclusion that the statement of price was intended as a fixed quote, and that a binding contract had been formed.

The appeal was dismissed, and the appellant was ordered to pay the respondent's costs on an indemnity basis.