Windsurfing International Inc v Sailboards Australia Pty Ltd

In the Federal Court of Australia, Jackson J was asked to determine whether a contract of sale was formed between Edward Michael Ring, as trustee in bankruptcy, and Michael David Foley and Kim Edwards for the sale of a property in North Arm, Macksville. The fundamental questions were whether a contract existed and if it was enforceable under the Conveyancing Act 1919 (NSW). The court found that a contract was formed on 19 April 1986, when Foley, acting on behalf of himself and Edwards, made the highest bid of $151,000, signed the contract, and paid a five percent deposit. Jackson J concluded that it was the intention of the parties that a contract would be formed upon execution of the contract and payment of the deposit by the highest bidder. The court also held that the contract was enforceable as it satisfied the requirements of s.54A(1) of the Conveyancing Act 1919, as the solicitors had authority to bind the vendor. Consequently, the court declared that Michael David Foley and Kim Edwards had an equitable interest in the property as purchasers under an agreement for sale made on 19 April 1986.