Melreef Pty Ltd v Glenn

In the case of Melreef Pty Ltd v Glenn, the respondent delivered cattle to the appellant for agistment, prior to the property in the cattle passing to the purchaser. The central issue was whether an inferred agreement existed for the respondent to pay for the agistment of the cattle. This determination hinged on whether the conduct of the parties, viewed in light of the surrounding circumstances, demonstrated a tacit understanding or agreement.

The court had to decide if the conduct of the parties, when considered objectively and from the perspective of reasonable individuals on both sides, indicated a concluded bargain for the agistment services. The court relied on precedents such as Integrated Computer Services Pty Ltd v Digital Equipment Corporation (Aust) Pty Ltd and Brambles Holdings Ltd v Bathurst City Council to support its reasoning. It was emphasised that inferring a contract from conduct would not be done lightly, as per Bell Group Ltd (in liq) v Westpac Banking Corporation. The facts established were that Mr Leeds, acting on behalf of Elders as a del credere agent, had entered into an agreement to purchase cattle from the respondent, and the cattle were delivered to the Depot under specific conditions.

The court concluded that the conduct of the respondent did not necessarily indicate an acceptance of liability for the agistment services. The key question was whether the dealings as a whole showed an agreement that the respondent would pay for the agistment, which the court found was not evident from the facts. Therefore, the court ruled against inferring such an agreement from the respondent’s conduct.