Stephenson v Dwyer

The dispute in Stephenson v Dwyer arose between two neighbours over a right of footway over a property. The case was heard by the Supreme Court of New South Wales. The plaintiff sought to extinguish a right of footway over their property, arguing that an agreement between the parties had effectively extinguished the right. The defendant denied that the agreement had the requisite legal effect and denied the plaintiff's claims.

The legal issues before the court included whether the proposal signed by the parties created a binding agreement to extinguish the right of footway and whether specific performance was an appropriate remedy. The court needed to determine if the proposal amounted to a contract, and if so, whether it was intended to be binding immediately or if further steps were required to make it binding.

The court found that the proposal did not create a binding agreement at the time it was signed. While the parties had expressed "in principle approval" for the extinguishment of the right of footway, there was no clear intention to create a binding contract immediately. The court held that the proposal was more akin to an agreement to agree in the future, rather than a finalised agreement. Consequently, the plaintiff's claim for specific performance of the alleged agreement was dismissed. The court emphasised that the proposal lacked the necessary clarity and specificity to be enforceable as a contract.