Pilot Farm Holdings Pty Ltd v Inbiz Investments Pty Ltd as Trustee for the Pilot Farm Unit Trust

Pilot Farm Holdings Pty Ltd sought to compel Inbiz Investments Pty Ltd, as trustee for the Pilot Farm Unit Trust, to enter into a new put and call agreement. The primary dispute was over whether a specific clause could be severed from the original void agreement and enforce a new or fresh put and call agreement. Additionally, the court had to determine whether this particular clause could still operate despite section 19 of the Land Sales Act 1948 (Qld), which rendered the contract void.

The legal issues centred on the interpretation of the contract and the application of statutory provisions that rendered the contract void. Specifically, the court had to decide if a severable clause could be enforced despite the void status of the agreement and whether such enforcement would contravene the statutory provisions. The applicant argued that the clause in question was independent and could stand alone, thus permitting enforcement. The respondent, however, contended that the entire agreement must be considered void and that enforcing any part of it would contravene the statutory provisions.

In examining these issues, the court held that the clause in question was not severable from the void agreement. It concluded that enforcing the clause would contravene section 19 of the Land Sales Act 1948 (Qld). The court further found that enforcing the clause would require the court to rewrite the agreement, which it was not empowered to do. Consequently, the application was dismissed, and the applicant was ordered to pay the respondent’s costs and to refund the deposit paid under the December deed.