White Pointer Investments Pty Ltd v Creative Academy Group Pty Ltd

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Supreme Court


New South Wales

Medium Neutral Citation: White Pointer Investments Pty Ltd v Creative Academy Group Pty Ltd [2023] NSWSC 817
Hearing dates: 20, 22 March 2023, further submissions 2, 5, 11 and 30 May 2023
Date of orders: 25 July 2023
Decision date: 25 July 2023
Jurisdiction:Equity - Commercial List
Before: Rees J
Decision:

Judgment against first defendant with costs.

Catchwords:

CONTRACTS — plaintiff offers to source childcare sites for the defendants at a “boozy” lunch — eight sites sourced in NSW and ACT — whether there was an oral contract – principles at [204]-[206] — whether to disregard evidence given consumption of alcohol, at [207] — post-contractual conduct corroborates oral contract — whether oral contract varied – plaintiff agreed to a series of indulgences, which were not variations for want of consideration, at [232].

CONTRACTS — sufficiency of consideration — defendants made settlement offer that was accepted — offered to pay an amount early instead of a larger amount already due — whether offer supported by sufficient consideration — principles at [235]-[237] — no tangible benefit — whether consideration in recording the agreement in writing — parties had already recently recorded their agreement — whether consideration by release of plaintiff from claims under Property and Stock Agents Act 2002 (NSW) and Agents Act 2003 (ACT) — parties then unaware of any issue with plaintiff’s real estate licence – no consideration where licensing issue not in parties’ contemplation at the time of formation – principles at [246]-[247].

REAL ESTATE AGENT – whether plaintiff precluded for recovering fees as no real estate agent licence – Property and Stock Agents Act 2002 (NSW) s9(2) – Agents Act 2003 (ACT) s 23 – whether should take into account other services for which no fee charged, at [33]-[35] – whether plaintiff “acting as agent” – principles at [260]-[266] – acted as agent for NSW site – whether “negotiating with”, at [278] – meaning of “inducing or attempting to induce” under Agents Act 2003, s8(2)(b) at [279]-[287] – inducement is of the counterparty, not the principal – plaintiff did not induce counterparty – plaintiff entitled to recover fees for ACT sites.

RESTITUTION – money had and received – whether defendants entitled to restitution of money paid under contract for NSW site due to plaintiff’s breach of Property and Stock Agents Act – principles at [314]-[319] – breach of Property and Stock Agents Act did not render contract unenforceable per se – legislation punished agents directly – no total failure of consideration – mistake – no entitlement to restitution for payments made under valid contract, at [321]-[322] – no evidence that defendants were mistaken or that mistake was causative of payments made, at [324].

CORPORATIONS — pre-incorporation contracts — s 131, Corporations Act 2001 (Cth) — special purpose vehicles later incorporated to enter into leases of childcare sites — plaintiff asked to invoice special purpose vehicles — principles at [221]-[224] — ratification — although common practice to set up companies for each…

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Details
Case
[2023] NSWSC 817
Decision Date

CaseChat Overview and Summary

White Pointer Investments Pty Ltd brought an action against Creative Academy Group Pty Ltd, seeking fees for sourcing childcare sites in NSW and ACT. The defendants contended that no contract was formed, that if a contract was formed it was varied without consideration, and that the plaintiff was not entitled to fees due to its lack of a real estate agent's licence. The Federal Court of Australia was tasked with determining the existence of a contract, the sufficiency of consideration for the settlement offer, the plaintiff's entitlement to fees, and the defendants' entitlement to restitution of payments made under the contract.

The court examined whether an oral contract was formed at a social event over alcohol, considering the post-contractual conduct and the consumption of alcohol. The court concluded that an oral contract was indeed formed, and that the consumption of alcohol did not affect the enforceability of the agreement. The court also examined whether the settlement offer was supported by sufficient consideration, and found that there was no tangible benefit to the plaintiff from the settlement offer, and that the consideration did not include the release from claims under the Property and Stock Agents Act 2002 (NSW) and Agents Act 2003 (ACT) as the licensing issue was not in the parties' contemplation at the time of formation.

The court held that the plaintiff was entitled to recover fees for the ACT sites, but not for the NSW site due to its lack of a real estate agent's licence. The court found that the plaintiff had acted as an agent for the NSW site, but not for the ACT sites, and that the plaintiff did not induce the counterparty as required under the Agents Act 2003 (ACT). The court also held that the defendants were not entitled to restitution of money paid under the contract for the NSW site due to the plaintiff's breach of the Property and Stock Agents Act 2002 (NSW), as there was no total failure of consideration and no evidence of mistake.

Finally, the court examined whether the pre-incorporation contracts were valid under s131 of the Corporations Act 2001 (Cth). The court held that the requirements of s131 were not established, as there was no discussion of special purpose vehicles at the time of the oral contract, and that the special purpose vehicles were not reasonably identifiable with the company on whose behalf the oral contract was entered into.

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Evidence

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Decision

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