Cairnsmore Holdings Pty Ltd v Bearsden Holdings Pty Ltd [2007] FCA 1822

FEDERAL COURT OF AUSTRALIA

Cairnsmore Holdings Pty Ltd v Bearsden Holdings Pty Ltd [2007] FCA1822 CONTRACTS – principles of construction of written instrument – promise that subject matter of agreement existed – breach of essential term DAMAGES – damages for breach of contract – payment of first instalment non refundable where vendor commits breach of essential term – reliance losses recoverable pursuant to indemnity clause – reliance losses also recoverable where difficult to calculate loss of profit TRADE PRACTICES – misleading and deceptive conduct – use of postal, telegraphic or telephonic services – requirements of knowledge for individual to be liable for involvement in contravention Corporations Act 2001 (Cth), ss 761A, 766A, 766B(1), 910A, 911A, 911B, 911C, 912A, 912B, 913A, 913B, 913C, 914A, 916A, 916B and 916F Financial Services Reform Act 2001 (Cth) Trade Practices Act 1974 (Cth), ss 6(3), 52, 75B, 82 Commonwealth v Amman Aviation (1991) 174 CLR 64 referred to Hadley v Baxendale (1854) 9 Ex 341 referred to I & L Securities Pty Limited v HTW Valuers (Brisbane) Pty Limited (2002) 210 CLR 109 referred to McDonald v Dennys Lascelles Limited (1933) 48 CLR 457 applied McRae v Commonwealth Disposals Commission (1951) 84 CLR 377 applied Medical Benefits Fund of Australia Ltd v Cassidy (2003) 135 FCR 1 referred to Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451 referred to Reardon Smith Line Ltd v Hansen-Tangen [1976] 1 WLR 989 at 995-996 referred to Shepherd v Felt & Textiles of Australia Limited (1931) 45 CLR 359 applied Toll (FGCT) Pty Limited v Alphapharm Pty Limited (2004) 219 CLR 165 applied Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd (1938) 39 SR (NSW) 632 applied CAIRNSMORE HOLDINGS PTY LTD AS TRUSTEE FOR THE CAIRNSMORE TRUST AND VERNON HOWLAND v BEARSDEN HOLDINGS PTY LTD AND JAMES PEARSON HODGE NSD 2137 OF 2005