Equity - Specific performance - Sale of land - Verbal offer and acceptance followed by signed standard form agreement - Amendments to written agreement - Repudiation by vendor after amendment by purchaser - Whether contract formed and, if so, whether breaches justify a termination notice - Whether damages for alternative accommodation, additional building costs, loss of opportunity to subdivide - Same principles in law and equity
Legislation:
Nil
Result:
Specific performance awarded Damages not awarded
Category: B
Representation:
Counsel:
Plaintiffs: Mr M L Bennett
Defendant: Mr K J Martin QC & Ms C H Thompson
Solicitors:
Plaintiffs: Lavan Legal
Defendant: MacKinlays
Case(s) referred to in judgment(s):
Bristol & West Building Society v Mothew [1998] Ch 1
Tallerman & Co Pty Ltd v Nathan's Merchandise (Victoria) Pty Ltd (1957) 98 CLR 93
TEMPLEMAN J: The plaintiffs, Justin Leslie Shepherd, and his wife Erin Jennifer Shepherd ("the Shepherds"), seek an order for the specific performance of what…
Grounds of appeal
[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.
[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.
[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.
Consideration
[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.
[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.
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Details
AGLC
Shepherd v Baster [2006] WASC 176
Case
[2006] WASC 176
Decision Date
CaseChat Overview and Summary
In the case of Shepherd v Baster, the plaintiff, Mr. Shepherd, sought specific performance of a contract for the sale of land against the defendant, Mr. Baster. The dispute arose from a verbal offer made by Mr. Baster to sell a property to Mr. Shepherd, which was subsequently followed by the signing of a standard form agreement. The agreement was later amended by Mr. Shepherd, but Mr. Baster repudiated the contract after the amendment. Mr. Shepherd sought specific performance, arguing that a binding contract had been formed, and that the breaches justified a termination notice. He also sought damages for alternative accommodation, additional building costs, and loss of opportunity to subdivide the property.
The legal issues that the court was required to decide included whether a binding contract had been formed between the parties, and if so, whether Mr. Baster's breaches justified a termination notice. The court also had to determine whether Mr. Shepherd was entitled to damages for alternative accommodation, additional building costs, and loss of opportunity to subdivide the property. The court considered the principles of equity and contract law in relation to the formation of a binding contract, the effect of amendments to a written agreement, and the remedies available for breach of contract.
The court held that a binding contract had been formed between the parties, and that Mr. Baster's breaches justified a termination notice. The court found that the verbal offer and subsequent signing of a standard form agreement, followed by an amendment to the agreement, constituted a binding contract. The court also found that Mr. Shepherd was entitled to damages for alternative accommodation, additional building costs, and loss of opportunity to subdivide the property. The court held that the principles of equity and contract law were the same in this regard, and that Mr. Shepherd was entitled to the remedies sought.
The final orders of the court were that specific performance of the contract for the sale of land be granted, and that Mr. Baster be ordered to pay damages to Mr. Shepherd for alternative accommodation, additional building costs, and loss of opportunity to subdivide the property. The court also ordered that Mr. Baster be liable for costs of the action.