Prior v Smith

In *Prior v Smith*, the New South Wales Court of Appeal considered a dispute between the appellant, Mr. Prior, and the respondent, Mr. Smith, concerning the enforceability of a contract for the sale of land. The primary issue revolved around whether the contract, which was admittedly in writing, satisfied the requirements of section 54A of the *Conveyancing Act 1919* (NSW) for an agreement relating to the sale or disposition of an interest in land.

The Court was required to determine whether the written documentation, when considered as a whole, sufficiently evidenced an agreement between the parties that was signed by the party to be charged or their agent. Specifically, the Court had to assess whether the exchange of correspondence and other documents created a sufficient note or memorandum in writing to satisfy the statutory requirement of part performance, or if the agreement was otherwise sufficiently established.

The Court of Appeal found that while there was a clear intention to enter into a contract, the written materials did not, when taken together, constitute a sufficient note or memorandum in writing as required by section 54A of the *Conveyancing Act 1919*. The reasoning focused on the absence of a single document that contained all the essential terms of the agreement and was signed by the party to be charged. The Court affirmed that the statutory requirement is strict and that mere oral agreement, even if evidenced by some written correspondence, is insufficient if the essential terms are not adequately recorded and signed.

Consequently, the Court of Appeal allowed the appeal, holding that the purported contract was unenforceable due to non-compliance with section 54A of the *Conveyancing Act 1919*. The orders of the primary judge were set aside, and judgment was entered for the defendant.