Varinder Toor v Vikas Sharma

In *Varinder Toor v Vikas Sharma*, the Supreme Court of New South Wales considered a dispute concerning the enforceability of an alleged oral agreement for the sale of shares in a company. The plaintiff, Varinder Toor, sought to enforce the agreement against the defendant, Vikas Sharma, who denied its existence.

The central legal issue before the Court was whether an oral agreement for the sale of shares, which are considered a 'chose in action' and therefore a 'good' for the purposes of the *Sale of Goods Act 1923* (NSW), could be legally binding and enforceable in the absence of written evidence satisfying the requirements of section 7 of that Act. The Court also had to determine if the conduct of the parties, particularly the defendant's actions, could amount to a sufficient act of part performance to take the oral agreement out of the Statute of Frauds.

Justice Timothy Brown found that the *Sale of Goods Act 1923* (NSW) applied to the sale of shares. His Honour held that section 7 of the Act, which requires a contract for the sale of goods of the value of $20 or upwards to be in writing or evidenced by writing, was not satisfied by the evidence presented. Furthermore, the Court determined that the alleged conduct of the defendant did not constitute sufficient part performance to render the oral agreement enforceable in equity. Consequently, the plaintiff's claim for specific performance of the oral agreement was dismissed.