Sumy Pty Ltd v Southcorp Wines Pty Ltd

Sumy Pty Ltd was the purchaser of a property from Southcorp Wines Pty Ltd. The dispute between the parties centred on the terms of the contract for sale of land and the calculation of damages for breach of contract. The case was heard by the Supreme Court of New South Wales. The primary legal issues were whether the plan attached to the contract was part of the contract, the applicability of the maxim falsa demonstratio non nocet, whether the stated area in the deposited plan amounted to a contractual warranty, whether the plaintiff's right to sue for breach merged on completion, and the calculation of damages for breach of contract. Additionally, the court considered whether reliance was placed upon a misrepresentation and the quantum of damages.

The court examined the contract and found that the plan attached to the contract was not part of the contract, and the maxim falsa demonstratio non nocet did not apply. The court determined that the stated area in the deposited plan did not amount to a contractual warranty, and the plaintiff's right to sue for breach did not merge on completion. The court held that damages should be assessed as at the time of breach and not as at the time of discovery of the breach or the date of trial. The court also found that the plaintiff had relied on a misrepresentation, and damages were assessed accordingly. The court awarded damages to the plaintiff and ordered the defendant to pay costs.