Wardley Australia Ltd v Western Australia

Wardley Australia Ltd appealed to the High Court of Australia against a decision of the Supreme Court of Western Australia. The dispute concerned the validity of certain provisions within a deed of covenant and indemnity entered into between Wardley Australia Ltd and the State of Western Australia. The State sought to enforce these provisions, which Wardley Australia Ltd contended were invalid and unenforceable.

The High Court was required to determine whether the impugned provisions of the deed were void as being contrary to public policy, specifically in relation to the State's power to enter into contracts and the potential for such contracts to fetter its statutory powers. A further issue was whether the deed, or parts of it, were invalid by reason of uncertainty or lack of consideration.

The Court, in dismissing the appeal, held that the provisions in question were not void as contrary to public policy. It was reasoned that the State, in entering into the deed, was acting in a contractual capacity and that the provisions did not improperly fetter its future exercise of statutory powers. The Court applied principles of contract law, considering the scope of public policy limitations on contractual arrangements involving government entities and the requirements for certainty and consideration in contractual agreements. The Court found that the deed was sufficiently certain and supported by valid consideration.

The appeal was dismissed with costs.