Quarante Pty Ltd v The Owners Strata Plan No 67212

Quarante Pty Ltd (the appellant) sought to recover the cost of refurbishment works carried out on the facade of a building comprising a strata scheme from the Owners Strata Plan No 67212 (the respondent). The appellant alleged an oral agreement with the respondent, through its strata managing agent, to reimburse it for these costs. The dispute centred on whether such a binding agreement had been formed and whether the strata managing agent's representative had the authority to bind the owners corporation.

The primary legal issues before the court were: (a) whether the terms of the conversation between the parties created a binding oral agreement for the respondent to reimburse the appellant for the refurbishment works; (b) whether the representative of the strata managing agent possessed the authority to bind the owners corporation to such an agreement; and (c) whether the actions of the representative were subsequently ratified by the owners corporation. The court also considered the powers and functions of an owners corporation's executive committee and its strata managing agent, particularly concerning the delegation of powers.

The court found that the conversation did not establish a binding agreement, as the essential terms were not sufficiently certain. Furthermore, it was determined that the strata managing agent's representative lacked the actual or ostensible authority to enter into such a significant financial commitment on behalf of the owners corporation. The court also concluded that there was no subsequent ratification of the representative's actions by the owners corporation. Consequently, the appeal was dismissed.