Shepperd v Ryde Corporation

In *Shepperd v Ryde Corporation*, the plaintiff sought an interlocutory injunction to restrain the defendant council from proceeding with a housing scheme. The dispute arose from the sale of land by the council, which had prepared a plan of subdivision. The plaintiff alleged that a representation made by the council regarding the use of a portion of the land as a park formed part of the contract of sale, either as a collateral promise or warranty.

The court was required to determine whether the council's statement of intention concerning the park constituted a binding contractual obligation. Specifically, the court had to consider whether the representation was sufficiently clear and definite to be incorporated into the contract, and if so, whether it amounted to a collateral promise or warranty that could be enforced against the council.

The court reasoned that for a statement to be considered a collateral promise or warranty, it must be made with the intention of inducing the other party to enter into the main contract. In this instance, the council's representation regarding the park was found to be a mere statement of intention, not a firm promise. The court held that the plan of subdivision, which was exhibited at the time of sale, did not contain any binding commitment to reserve the land as a park. Consequently, the plaintiff's claim for an injunction based on a breach of contract failed.