Mohamed v Farah

The matter before the court involved Mohamed and Farah, who were in dispute over a contract that Mohamed believed had been accepted by Farah. Mohamed sought a declaration that Farah was bound by the contract and sought other remedies. The case was heard in the Supreme Court of New South Wales. Mohamed argued that Farah had accepted an offer via a fax sent to Mohamed's solicitor, which was received after business hours on the final day of the offer's validity. Mohamed contended that the acceptance was valid as it came to Farah's solicitor's notice before the offer expired. Farah disputed this, arguing that the acceptance was not effective as it was not received during business hours and that Mohamed's solicitor had made a mistake in drafting the offer, which Farah was unaware of.

The court was required to determine whether the acceptance of the offer was properly served, whether it was effective despite being received after business hours on the last day, whether the offer was affected by the mistake made by Mohamed's solicitor, and whether Mohamed could withdraw the offer after acceptance. The court also needed to decide whether the matter was purely contractual and whether the litigation context and the court's role in ensuring a just result were relevant.

The court held that the acceptance was properly served and effective, as it came to Farah's solicitor's notice before the offer expired, despite being received after business hours. The court found that the mistake made by Mohamed's solicitor did not affect the offer, as Farah was unaware of the mistake. The court also determined that Mohamed could not withdraw the offer after acceptance, as the acceptance was valid. The court found that the matter was not purely contractual, as the litigation context and the court's role in ensuring a just result were relevant.

The court ordered that Farah was bound by the contract and awarded Mohamed damages and other remedies as sought. The court emphasised the importance of ensuring that parties to a contract understood the terms and conditions and the consequences of accepting an offer. The court also highlighted the need for parties to be aware of mistakes made by their solicitors and the potential consequences of those mistakes.