Mareva Building Consultants v Zevon

In the case of Mareva Building Consultants v Zevon, the Federal Court was tasked with determining whether a binding agreement existed between the parties, and if so, whether the defendant was liable for breach of contract. The plaintiff, Mareva Building Consultants, alleged that the defendant, Zevon, had entered into a contract for the construction of a building but failed to complete the work or pay for services rendered. The defendant contended that no enforceable contract existed, and that any agreement was contingent upon securing financing.

The court was required to examine the formation of the contract, specifically whether the parties had demonstrated an intention to be legally bound before a formal written contract was executed. This involved an objective assessment of the parties' communications and conduct to ascertain their true intentions. Additionally, the court needed to consider whether the agreement was subject to financing, which could potentially negate the enforceability of the contract. Furthermore, the court had to determine if the defendant was estopped from denying the existence of the contract and whether the contract was breached or terminated by the defendant.

The court found that an enforceable agreement had indeed been formed between the parties, based on their conduct and the objective assessment of their communications. The court held that the agreement was not subject to finance and that the defendant was estopped from denying its existence. Consequently, the court ruled that the defendant was liable for breach of contract. The court ordered judgment in favour of the plaintiff in the amount of $19,887, with the question of costs reserved for further consideration.