Properties Northside Pty Ltd t/as Raine & Horne Manly/Freshwater v Pickering

The matter before the court involved a dispute between Properties Northside Pty Ltd trading as Raine & Horne Manly/Freshwater, and Mr Pickering. The plaintiff sought rectification of a settlement agreement to reflect the parties' true intention, contending that both parties were under a common and unilateral mistake as to the terms of the settlement. The defendant opposed the application on various grounds, including the argument that the plaintiff had engaged in sharp practice, which would render the contract voidable. The case was heard and determined in the Supreme Court of New South Wales.

The central legal issues before the court were whether the plaintiff was entitled to rectification of the settlement agreement due to a common and unilateral mistake and whether the plaintiff had engaged in conduct that would make the contract voidable. Additionally, the court had to consider the enforceability of a restraint of trade clause in the settlement agreement, which the defendant argued was unreasonable and unenforceable.

In delivering the judgment, the court found that there had been a unilateral mistake by the defendant in the settlement agreement, which was not communicated to him. The court held that rectification was appropriate to correct the mistake and reflect the parties' true intentions. The court dismissed the defendant's argument that the plaintiff had engaged in sharp practice. The court also held that the restraint of trade clause was reasonable and enforceable in the context of the real estate agency business, taking into account the nature of the business and the factors relevant to the restraint.

The court ordered that the settlement agreement be rectified to reflect the parties' true intention. Additionally, the court enforced the restraint of trade clause, finding it to be reasonable and enforceable. The defendant was restrained from engaging in the real estate agency business in certain areas for the duration specified in the settlement agreement.