Pasalic v Vana Pty Ltd

In *Pasalic v Vana Pty Ltd*, the New South Wales Court of Appeal considered a dispute between the appellant, Mr Pasalic, and the respondent, Vana Pty Ltd. The case concerned an appeal against a decision of the Supreme Court of New South Wales.

The primary legal issue before the Court of Appeal was whether the Supreme Court had erred in its interpretation and application of the *Builders Licensing Act 1971* (NSW) in relation to a contract for building work. Specifically, the court had to determine if the contract was void *ab initio* due to non-compliance with the Act, and if so, what the consequences of that voidness were for the parties' rights and obligations.

The Court of Appeal, in its reasoning, affirmed that a contract for building work entered into by an unlicensed builder is void and unenforceable. The court applied the principle that legislation designed to protect the public, such as the *Builders Licensing Act*, will render contracts that contravene its provisions void. The court found that the Supreme Court had correctly applied this principle and that the contract in question was indeed void due to the appellant's lack of a valid builder's licence at the time the contract was entered into.

Consequently, the Court of Appeal dismissed the appeal, upholding the Supreme Court's finding that the appellant was not entitled to recover any sum for the work performed under the void contract.