| IN THE SUPREME COURT OF VICTORIA | Not Restricted |
AT MELBOURNE
COMMON LAW DIVISION
PROPERTY LIST
S ECI 2018 00198
| GAIL PATRICIA LEAHY | Plaintiff |
| v | |
| PETER JAVNI | Defendant |
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JUDGE: | Ginnane J |
WHERE HELD: | Melbourne |
DATE OF HEARING: | 21-22 April 2020 |
DATE OF JUDGMENT: | 15 October 2020 |
CASE MAY BE CITED AS: | Leahy v Javni |
MEDIUM NEUTRAL CITATION: | [2020] VSC 680 |
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CONTRACT LAW – Sale of Land formation – Offer and acceptance – Conditional offer – Whether defendant made conditional offer – Whether offer withdrawn - Electronic Transactions (Victoria Act) 2000, s 13A.
CONTRACT LAW – Formation – Offer and acceptance – Method of acceptance – Time of acceptance – When is acceptance conveyed to other party.
LEGAL PRACTITIONERS - Scope of authority – Actual or ostensible – Whether authority to receive notice of acceptance of offer.
SALE OF LAND – Cooling off provisions – Vendor’s right to retain percentage of deposit – Whether rights exist when deposit not paid – Sale of Land Act 1962 s 31(4).
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APPEARANCES: | Counsel | Solicitors |
| For the Plaintiff | Mr W F Gilles | SLM Law |
| For the Defendant | Mr B Carew | Whyte Just & Moore Lawyers |
HIS HONOUR:
Background
The plaintiff, Gail Patricia Leahy, was the owner of a house and property at Eastern Beach Road, Geelong (‘the Property’). Her case is that she entered into a contract to sell the Property to the defendant, Peter Javni, on 15 May 2017 (‘May contract’), but that he defaulted in paying the deposit of $450,000 and that she rescinded the contract because of that default. She claims the sum of $450,000 as a debt. She also claims the sum of $10,000 in respect of a previous contract of sale that she and Mr Javni entered into for the sale of the Property, but which Mr Javni terminated under the cooling off provisions in the Sale of Land Act 1962 (‘SLA’).
Mrs Leahy ultimately sold the Property to a third party for $4,000,000 with settlement occurring on 31 August 2018.
The first contract Mrs Leahy and Mr Javni entered into for the sale of the Property was dated 16 February 2017 for a price of $5,000,000, with a $500,000 deposit payable by 17 February 2017.
On 17 February 2017, Mr Javni by his lawyers, Whyte Just & Moore Lawyers, exercised his cooling off rights under s 31 of the SLA to terminate the first contract. Mrs Leahy claims $10,000, being 0.2 per cent of the purchase price, as her entitlement under the cooling off provisions.
Mr Cross gave evidence that at the time Mr Javni terminated the first contract, he said that he thought that he and his wife were over-extending themselves financially, that he still loved the Property and that he would still pursue it at a lower figure, but ‘couldn’t see value at $5 million’.[1] Mr Javni’s evidence was that he spoke to his wife and that both of them were not interested in purchasing the Property.[2] There was also evidence from the Leahys…
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- AGLC
- Leahy v Javni [2020] VSC 680
- Case
- [2020] VSC 680
- Decision Date
CaseChat Overview and Summary
The central legal issues in the case were the identification and acceptance of a conditional offer, the method and timing of acceptance, and the authority of the parties involved in the communication of the offer and its acceptance. The court had to determine if the conditions placed on the offer by Javni were sufficient to constitute a conditional offer, and if the offer was properly withdrawn. Additionally, the court examined whether the acceptance was communicated in a timely manner and whether the party receiving the acceptance had the authority to do so.
The court found that Javni did indeed make a conditional offer, which was subsequently withdrawn before Leahy could accept it. The court ruled that the method of communication used to withdraw the offer complied with the Electronic Transactions (Victoria Act) 2000, s 13A. The court also held that the authority of the party receiving the notice of withdrawal was sufficient to bind the parties to the agreement. In light of these findings, the court determined that Leahy’s claim was not valid.
The court ordered that Leahy take no further action in relation to the claim for breach of contract against Javni. The court also ruled that Javni was not liable for any costs incurred by Leahy in relation to the claim.
Orders
Orders of the court
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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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