Supreme Court of South Australia
(Civil)
MASONIC HOMES LTD v OPPEDISANO & PLATINUM PROPERTY RETIREMENT PTY LTD
[2016] SASC 196
Judgment of The Honourable Justice Doyle
16 December 2016
CONTRACTS - GENERAL CONTRACTUAL PRINCIPLES - ILLEGAL AND VOID CONTRACTS
CONTRACTS - GENERAL CONTRACTUAL PRINCIPLES - CONSTRUCTION AND INTERPRETATION OF CONTRACTS
The plaintiff and the first defendant entered into a contract for the sale and purchase of a portion of a larger parcel of land to be acquired by the first defendant. The land the subject of the contract was defined in the contract as the land marked “A” on the plan in Annexure B to the contract. The plan in Annexure B to the contract was a copy of the Certificate of Title for the larger parcel of land, with a hand drawn rectangle in the bottom right hand corner containing the words “Masonic Village 4 ha Indicative Only”.
The plaintiff contended that the contract was void for uncertainty; that the land in the contract was not sufficiently certain as to subject matter in that the area and dimensions of the land were unclear, and were not capable of being ascertained from the terms of the contract (at least not without further agreement between Masonic Homes and PPR); and that it was not sufficiently certain as to price as the purchase price was to be derived by a formula which required the area of the land to be established. The defendants denied that the contract was uncertain. They also contended that, in any event, the plaintiff had elected to affirm the validity of the contract, or was estopped from asserting that the contract was void for uncertainty.
Held per Doyle J, dismissing the plaintiff’s claim:
1. The contract is not void for uncertainty.
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; Byrnes v Kendle (2011) 243 CLR 253; Taluja v Shree Shirdi Sai Sansthan Sydney Ltd [2016] NSWCA 158; Ipex Software Services Pty Ltd v Hosking [2000] VSCA 239; Upper Hunter County District Council v Australian Chilling & Freezing Co Ltd (1968) 118 CLR 429; York Air Conditioning and Refrigeration (A/sia) Pty Ltd v The Commonwealth (1949) 80 CLR 11; Equuscorp Pty Ltd v Belperio [2006] VSC 14; Equuscorp Pty Ltd v Antonopoulos [2008] VSCA 179, discussed.
Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; White v Australian and New Zealand Theatres Ltd (1943) 67 CLR 266; County Securities Pty Ltd v Challenger Group Holdings Pty Ltd [2008] NSWCA 193; Thorby v Goldberg (1964) 112 CLR 597; Biotechnology Australia Pty Ltd v Pace (1988) 15 NSWLR 130; Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633; Brice v Chambers [2014] QCA 310; Australian Securities and Investments Commission v Fortescue Metals Group Ltd (2011) 190 FCR 364; Hall v Busst
Continue reading Masonic Homes Ltd v Oppedisano
Sign in free to access the full text
- AGLC
- Masonic Homes Ltd v Oppedisano [2016] SASC 196
- Case
- [2016] SASC 196
- Decision Date
CaseChat Overview and Summary
The court was required to decide whether the contract was sufficiently certain to be enforceable and, if so, how the area and dimensions of the land should be determined. The plaintiff argued that the contract was void for uncertainty due to the vague description of the land, while the defendant contended that the contract was clear enough and could be enforced. The court needed to interpret the contract and determine whether it established a mechanism for ascertaining the precise area and dimensions of the land.
The court concluded that the contract was not void for uncertainty. It held that the contract established a mechanism that enabled the location and dimensions of the leasehold land to be ascertained without further agreement between the parties. The court found that the contract allowed for the plaintiff to undertake a survey and prepare a final plan, which provided a means of determining the area and dimensions of the land. The court also noted that the contract included a structure plan that had to be agreed upon by the District Council of Light, which further facilitated the determination of the land's area and dimensions.
As a result, the court dismissed the plaintiff's claim for a declaration that the contract was void for uncertainty and declined to make a declaration as to the area and dimensions of the land. The court ruled that the contract should be enforced according to the construction articulated in its reasons and that any disputes regarding the area and dimensions of the land could be addressed if and when they arose.
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Evidence
Evidence Before The Court
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.