Tomanovic Multiown Pty Limited v Interlux Projects Pty Limited

Tomanovic Multiown Pty Limited brought an action against Interlux Projects Pty Limited in the Supreme Court of New South Wales. The dispute involved the validity of terms in a contract between the two parties, specifically whether certain terms were unjust and whether there was undue influence in the relationship between the two parties. The plaintiff sought to have the contract reviewed and certain terms declared void under the Contracts Review Act 1980 (NSW). The primary legal issues the court had to decide were whether the terms of the contract were unjust and whether there was undue influence in the relationship between the parties. The court considered whether the terms of the contract were unjust under section 9(2) of the Contracts Review Act 1980 (NSW) and whether there was undue influence in the parent-child relationship between the parties, overlapping both at common law and under the statute.

The court found that the terms of the contract were indeed unjust under the Contracts Review Act 1980 (NSW) because they significantly disadvantaged the plaintiff and were not reasonably necessary to protect the legitimate interests of the defendant. The court also found that there was undue influence in the relationship between the parties, as the defendant, being the parent company, held a position of authority and influence over the plaintiff, which led to the unfair terms in the contract. The court concluded that the terms were unjust and that the undue influence further exacerbated the unfairness. The court ordered that the contract be reviewed and that certain terms be declared void and unenforceable, providing relief to the plaintiff and ensuring that the contract did not operate unfairly.