Tu v Primary Contracting Services Pty Ltd (trading as Australian Contracting Solutions)

The appeal concerned an alleged oral agreement where the appellant, Ms. Tu, purportedly agreed to be responsible for the payment of invoices issued by Primary Contracting Services Pty Ltd (trading as Australian Contracting Solutions) to a company called "The Building Company". The primary judge had found that such an agreement existed and that Ms. Tu was liable for the outstanding amounts.

The central legal issues before the Court of Appeal were whether an oral agreement for Ms. Tu to guarantee payment of the invoices had been established, whether there was sufficient consideration for such a guarantee, and whether the guarantee was unjust under the Contracts Review Act 1980 (NSW). The appellant also raised a defence under section 52 of the Trade Practices Act 1974 (Cth), alleging misleading or deceptive conduct by the respondent.

The Court of Appeal found that the primary judge's findings of fact were sound and that the evidence supported the existence of an oral agreement where Ms. Tu accepted personal responsibility for the debts of The Building Company. The court held that the continued supply of services by the respondent to The Building Company constituted sufficient consideration for Ms. Tu's promise. Furthermore, the court found no basis to conclude that the guarantee was unjust within the meaning of the Contracts Review Act. The claim under the Trade Practices Act was also dismissed.

Consequently, the appeal was dismissed, and Ms. Tu was ordered to pay the costs of the respondent.