Reitano v Reitano

The parties in the case of Reitano v Reitano were siblings who were disputing the existence of an oral contract regarding the ownership of a property. The matter was heard in the Federal Court of Australia. The central issue was whether there was evidence of an oral contract and if subsequent conduct could be admitted as proof of the contract's existence. The court also needed to determine if there was an oral declaration of trust and whether subsequent conduct could be used as evidence of such a trust.

The court considered that there was no presumption against the existence of an intention to create legal relations in family agreements. It noted that the seriousness and finality of the circumstances could establish the intention to be legally bound. The court further examined the doctrine of part performance as an alternative to reliance on specific sections of the Conveyancing Act. It held that conduct must be unequivocally referable to a contract of the general nature alleged. In this case, the conduct was found to be unequivocally referable to the alleged contract, and the party had exclusive control and possession of the property for 25 years without any alternative agreement.

The Federal Court found that the evidence of the oral contract and the subsequent conduct of the parties was sufficient to establish the existence of both an oral contract and an oral declaration of trust. The court concluded that the conduct of the parties, particularly the exclusive possession and control of the property, was unequivocally referable to the alleged contract and trust. As a result, the court held that the oral contract and trust were valid and enforceable. The court ordered that the property be held in trust for the benefit of both parties according to the terms of the oral agreement.