Le v Nguyen (Appeal)

Le v Nguyen was an appeal heard by the Tribunal involving the parties Ms Le, the purchaser, and Mr Nguyen, the vendor, regarding a dispute over a property transaction. The dispute centred around a property sale agreement dated 11 January 2015, which included a deposit of $75,000 to be paid by Ms Le to Mr Nguyen. The dispute arose when Ms Le sought to rescind the agreement and have the deposit returned. Mr Nguyen counterclaimed for damages for breach of the agreement.

The primary legal issue before the court was whether the deposit payment clause in the agreement constituted a penalty clause, which if found to be unenforceable, would result in the deposit being returned to Ms Le. Additionally, the court needed to determine the appropriate damages payable by Ms Le to Mr Nguyen for breach of contract, if any.

In its decision, the Tribunal held that the deposit payment clause was a penalty and thus unenforceable. The Tribunal found that the clause disproportionately punished Ms Le for breach of contract, serving as a deterrent rather than a genuine pre-estimate of loss. Consequently, the Tribunal ordered that the deposit be returned to Ms Le, less the amount of damages owed to Mr Nguyen for breach of contract. The Tribunal assessed the damages at $29,120, which was to be paid by Ms Le to Mr Nguyen. The Tribunal also dismissed Ms Le's appeal and allowed Mr Nguyen's counterclaim for damages. The Tribunal directed that the deposit held by Carden & Co, Law Practice be released, with $29,120 paid to Mr Nguyen and the remainder to Ms Le. The order for payment of damages was stayed for 28 days to allow for any further appeal.