Ellison v Lutre Pty Ltd [1999] FCA 399

FEDERAL COURT OF AUSTRALIA

Ellison v Lutre Pty Ltd [1999] FCA 399 CONTRACT - Breach of Corporations Law by vendor of prescribed interests - purported avoidance of contract by purchaser pursuant to statutory right to avoid - whether statutory right to avoid may be lost by affirmation - whether knowledge of facts entitling avoidance sufficient to give rise to possible affirmation - whether prior affirmation of contract. CORPORATIONS - statutory right to avoid a contract.

Corporations Law ss 9, 92, 1018, 1043B, 1064, 1065, 1066, 1069, 1073(2), 1073A, 1084(2)

Corporations Legislation Amendment Act (No. 2) 1991 Workers' Compensation Act 1926 (NSW) s 63 Business Agents Act 1938 (SA) s 39 Companies Act 1892 (SA) s 226

Managed Investments Act 1998 Conveyancing (Vendor Disclosure & Warranty) Regulation 1986 (NSW) cl 7(2) Hurst v Vestcorp (1988) 12 NSWLR 394 considered Sargent v ASL Developments (1974) 131 CLR 634 considered Ormes v Beadel (1860) 2 De G F & J 333; 45 ER 649 considered Sharpley v London & East Coast Railway Company [1876] 2 Ch D 663 considered Molotu Pty Ltd v Solar Power Ltd (1989) 6 BPR 13,460 applied Zucker v Straightlace Pty Ltd (1987) 11 NSWLR 87 considered Commonwealth v Verwayen (1990) 170 CLR 394 applied Elder's Trustee and Executor Co Ltd v Commonwealth Hames Investment Co Ltd (1941) 65 CLR 603 applied O'Connor v S. P. Bray Ltd (1936) 36 SR (NSW) 248 considered Re Hoffman; Ex parte Worrell v Schilling (1989) 85 ALR 145 considered Peyman v Lanjani [1985] Ch 457 considered Latter v The Council of the Shire of Muswellbrook (1936) 56 CLR 422 considered Szep v Blanken [1969] SASR 65 considered Official Receiver v Feldman (1972) 4 SASR 246 considered Commonwealth Homes and Investment Company v Smith (1937) 59 CLR 443 considered Coastal Estates Pty Ltd v Melevende [1965] VR 433 distinguished Tiplady v Gold Coast Carlton Pty Ltd (1984) 8 FCR 438 considered