Patorniti & Ors v. Chin Hong Investments Corp Pty Ltd

The applicants, Salvatore Patorniti, Grazia Patorniti, and Lina Macarone, sought the removal of a caveat over their commercial property located at Progress Road, Burpengary. The caveat was lodged by the respondent, Chin Hong Investments Corp Pty Ltd, which claimed to be the purchaser under a written contract of sale. The applicants disputed the enforceability of the written offer, arguing that it was subject to a formal contract, while the respondent maintained that the written offer constituted a binding agreement. The primary issue for the Court was to determine whether the written offer constituted a binding contract or if it was merely a proposal subject to a formal contract.

The Court examined the contents of the written offer, which included a purchase price of $6.533 million, a deposit of $100,000, and special conditions such as due diligence and tenancy matters. The offer concluded with a statement that the agreement would be binding between the parties upon acceptance. The Court noted that while the offer was subject to the execution of a formal contract within seven days, the final sentence of the document stated that the agreement was binding upon acceptance. The Court concluded that the clear intention of the parties, as expressed in the document, was that the agreement was binding upon acceptance, despite the reference to a formal contract. Therefore, the Court found that there was a sufficient interest to sustain the caveat and dismissed the application for its removal.

In the final orders, the Court refused the application for the removal of the caveat and directed that the proceedings would continue as a claim. The applicants were ordered to file and serve their statement of claim within seven days, and the respondent was to file and serve its notice of intention to defend and defence within seven days of receipt of the statement of claim. Additionally, the applicants were ordered to pay the respondent's costs of the hearing, including the cost of affidavits.