Select any passage to save a personal note with optional tags.
ishas
OF AUSTRELIA
WRAY
| REASONS FOR JUDGMENT
Judgment delivered at SYDNEY.
on FRIDAY, 187. AUGUST, 1952.
HL, Dan, Gor. Prt, Sith
980/48
SIMON Ve PAYNE
ORDER
Order of the Full Court of the Supreme Court
varied by substituting for the order as to the amount
recoverable a direction that judgment should be entered
for £548.11.5 together with an amount equal to the present
value as on 12th December 1948 of £1416.8.7. payable in
weekly amounts of £15 each and a direction that there be an
inquiry by the Registrar of the Supreme Court to ascertain
the amount of such present value, unless the parties agree
thereon.
Otherwise appeal dismissed with costs to be
taxed less the sum of £20.
SIMON ve PAYNE
JUDGMENT : DIXON C.J.
TT
KITTO J.
SIMON ve PAYNE
[UDGMENT : DIXON C.J.
By the order under appeal the plaintiff respondent
recovered judgment against the defendant appellant for the sum
of £2113.9.0 with costs in an action of contract. The order was
made by the Full Court of the Supreme Court of Queensland which
set aside a judgment for the plaintiff for £120 only, with costs,
given at the trial by Mansfield S.P.J.
The sum to which the plaintiff has been held
entitled represents the balance of moneys found to be payable by
the defendant to him in respect of the goodwill and assets,
including trucks and transport licences, of a carrying business
which the plaintiff had carried on but had made over to the
defendant.
The plaintiff had carried on for some ten years a
service for the carriage of goods between Redcliffe and Brisbane
and then he became bankrupt. By some arrangement, the nature
of which appears only indistinctly, one Gordon Brown bought from
the trustee in bankruptcy a half share of the business, and enough
money was found for the creditors to obtain a discharge for the
plaintiff. Thereupon Brown and the plaintiff were to dispose of
the business to the defendant. Brown and the plaintiff as
vendors accordingly entered into an agreement with the defendant
as purchaser, The agreement which was in writing under hand was
dated Ist August 1947. Thereby the vendors agreed to-sell and
the purchaser agreed to purchase the goodwill and effects,
enumerated in a schedule, of the vendors carrying business upon
terms and conditions which the document proceeded to set out.
The price was fixed at £4000. Of this sum £1500 was paid as a
deposit, £500 was to be paid on 5th August 1947, that is five days
ae
later, a further sum of £1000 was to be paid when, in the words
of the agreement "the license plates for all trucks belonging to
the s@id carrying business are transferred to the purchaser", and
the balance being £1000, was to be paid by equal monthly instal-
ments of £100, "the first of such payments to be made one month
after the date of the transfer of the said license plates".
Possession was to be given, and was in fact given, on the day
following, viz; 2nd August 1947. One of the conditions of the
agreement was that the vendors should not within five years
commerace or be engaged concerned or interested in a carrying
business within thirty miles of Redcliffe.
The schedule gave particulars of seven motor lorrie
one of which was described as unregistered, (Scil. under the Main
Roads Acts 1920 to 1943) and it included spare tyres used in or
about the business and spare parts.
What the body of the agreement called "license
plates" were dealt with in the schedule by the brief item "3
Transport Licenses". These were in fact three licences to the
plaintiff, which in spite of his bankruptcy he still held, issued
to him under the State Transport Acts 1938-to 1943. Those Acts
had im the meantime been repealed by the State Transport Facilities
Act 1946 which came into force on 8th April 1947. The licences
were maintained in force by the third paragraph of sec.5(3) of
the letter Act which provides that such a licence then in force
should, unless sooner revoked or surrendered under the repealed
licensing provisions, continue in force until the currency or the
extended currency of such licence under the new legislation
shoulda expire.
Under the repealed provisions a licence was issued
in respect of each vehicle the licensed carrier employed. Three
only therefore of the registered lorries transferred with the
business were licensed, but probably there was not much difficulty
in substituting one registered vehicle for another.
Under the State Transport Facilities Acts a licence
is given, not in respect of the vehicles, but for the carrying
service; though vehicles may not be used in the service unless
Be
they have been approved: secs 27: 28: 37 and 38. Another
difference between the old and the new legislation, one important
in this case, is that in the former there was no provision
ensbling the transfer directly of licences from the licensee to
a proposed transferee; while sec. 43 of the State Transport
Facilities empowers the Commissi ner of Transport upon application
by the licensee and proposed tranferee to transfer a licence
under that Act, under such terms and conditions as he may
determine.
Under the repealed State Transport Acts a transfer
of a licence could mly be effected by the licensee surrendering
the licence and the Commissioner issuing a licence in lieu
thereof to the proposed transferee. As Sec,43 of the State
Transport Facilities Acts applies to licences under those Acts,
and not to licences under the previous Acts, the purpose of
transferring the three licences in the plaintiff's name to the
defendant could only be accomplished by a surrender by the
plaintiff of the old licences and the issue of a fresh licence
to the defendant. A difficulty attending this procedure was
that sec.29 requires the Commissioner before he issues a licence
to invite applications for the licence by public advertisement.
But subsec.(2) of the same section provides by way of qualific~
ation or exception that the Commissioner may, subject to obtaining
the approval of the Governor in Council, issue a licence without
such an advertisement where there are good and sufficient reasons
for doing so. The exception also covers the case of the issue
of a licence under the new provisions to the holder of a licence
under the old legislation to enable him to continue the service,
The prties were probably not aware of all these provisions, but
on the same date as the agreement was executed the solicitors
who drew it for the parties prepared a letter to the Commissioner
from the plaintiff informing him that he desired to have the
three licences transferred to the defendant or to have them
cancelled and reissued in the defendant's name and requesting the
Commissioner to do what ever was necessary for the purpose. The
plaintiff signed the letter when he executed the agreement,
In these circumstances the references in the agreement to the
transfer of the licences or "license plates" (equivalent
expressions) must be taken to cover the procedure by surrender and
reissue, The Commissioner's response was to inform the solicitors
for the parties that there were no provisions for the transfer of
licences issued under the repealed State Transport Acts and he
could only act under secs. 27 and 28 of the State Transport
Facilities Act 1946, that is to say the sections authorizing him
to issue licences and approve vehicles. Whether there was a
misunderstanding of the course the Commissioner intended to take
or whether some other explanation accounts for the next step does
not appear. But the next step was the preparation and execution
of an agreement varying the first agreement. The second agree-
ment is dated 20th August 1952. It consists only of three
clauses, The first provided that the purchase price of the
goodwill and effects of the carrying business should be £1500
instead £4000 and acknowledged that the sum of £1500 had been
paid. The second clause provided that the purchaser should pay
the vendors "for the use of the plates granted to him by the
Commissioner of Transport the sum of £15 per week for a period
of three years from the date hereof when the vendors should
undertake to have signed (sic) to the purchaser the rights of (sic)
such plates"; The third clause confirmed the principal agree-
ment "subject only to the variations herein contained and such
alterations if any as may be necessary to make the principal
agreement consistent with this agreement".
It is hardly necessary to say that the attempt
made by the second of these clauses to transfer or impart to the
purchaser the benefit of the licences of which the plates are
the outward symbol or manifestation is quite contrary to the
policy, and indeed the provisions, of the legislation. Sec.23
prohibits persons from using or permitting or allowing to be
used On any road a vehicle for the carriage of goods unless
under and in accordance with a provision of Part III of the State
Transport Facilities Acts, Nothing in Part III would warrant
such a thing and no warrant can be found in any extension of the
Be
privileges given by licences under the repealed State Transport
Acts which sec. 5(3) of the State Transport Facilities Acts may
accomplish nor in the continuance of secs, 6,7,8,15,16,and 17
of the repealed Acts effected by sec.5(3)(i) of the latter Act.
Indeed it was not denied by Counsel that clause 2
of the agreement of variation contemplated an illegality and
was unlawful,
It is quite clear that clause 2 is a basal part of
the agreement of variation and that the whole agreement must
stand or fall with it. This agreement must therefore be
considered as illegal and void. However the parties proceeded
for a time on the basis of its provisions. Gordon Brown it is
true soon dropped out, He received the full sum of £1500 which
had been paid by the purchaser and he thereupon resigned his
interest to the plaintiff. Hence it comes that the plaintiff,
without objection from the defendant, sues alone in this action
and does not join Gordon Brown as a co-plaintiff. But as from
2nd August 1947 the defendant carried on the business, The
three licences in the plaintiff' name did not expire all at the
same time but the earliest expired on 30th September 1947.
The Commissioner on that date extended all three to a uniform
date viz: 30th April 1948. On 16th December 1947 the Commissione:
informed the parties that the approval of the Governor in
Council had been obtained to the issue of a licence to the
defendant under the State Transport Facilities Act and that he
would issue the licence to the defendant subject to the proper
observance of the requirements of that Act. The Commissioner
said that it would be necessary for the defendant to make a
formal application for a licence to obtain the surrender by the
plaintiff of his three licences, to submit the vehicles for
inspection and to forward certificates of registration, of
insurance and of inspection. When this was done a licence
would issue in the defendant's name with a currency to 30th
April 1948, The defendant sent forms of surrender to the
plaintiff and requested. him to sign them By this time the
parties were no longer advised by the same solicitors, The
6.
plaintiff's solicitors took the view that now that the
Commissioner was about to accept a surrender of the plaintiff's
licences and issue a licence to the plaintiff, the agreement of
variation providing for a payment of £15 a week for three years
was in~-appropriate and they required that the parties replace
it with another agreement, in the meantime holding the surrenders
which the plaintiff had signed. The Commissioner had made a
circular demand upon all licensees under the repealed Acts to
renew their licences under the existing Statute before the 3ist
January 1948 and to comply with this demand they proposed,
unjess the matter was settled before then to apply for a renewal
in the plaintiff's name. Such a licence would be transferable
to the defendant under sec. 43 of the State Transport Facilities
Acts, so to take the course indicated would not be inconsistent
with the agreement. But however reasonable the view may be
thought to be that the agreement of variation had become
inappropriate to the situation, the plaintiff was not entitled
to make it a condition of his taking further steps towards the
fulfilment of the transaction that the defendant should agree upon
new terms, -The defendant however did not elect to disaffirm the
transaction, either then or afterwards while the plaintiff
persisted in seeking a new agreement. On the contrary he
retained the trucks and continued to exploit the goodwill of
the business. He complained to the Commissioner and asked for
advice, The Commissioner naturally was more concerned with the
carrying on of the service. He sought payment of the fees due
monthly under the licences and as the end of January drew near
he wrote to the defendant's solicitors asking that before 31st
of the month the application of the defendant, the surrender of
the plaintiff's licence and the other documents he had before
required should be forwarded to him together with a letter from
poth parties stating that it was desired that the licence should
issue in the defendant's name. Otherwise he said the licences
would go on till 30th April 1948 when they would expire and then
they would be subject to his power to invite applications fora
licence to conduct the service: sec.29(1), As between the
parties the plaintiff maintained his contention that the
variation of 20th August 1947 was not applicable to an immediate
grant to the defendant of a licence and that a new arrangement
should therefore be made. But to the Commissioner on 30th
January 1948 the plaintiff sent in his surrenders together with
an application for a reissue to himself, There is a reference
in the application to two letters to the Commissioner which prob-
ably explained the purpose, which, as stated in a letter to
the defendant's solicitors, was to satisfy the requirements of
the Commissioner, to prevent a lapse of the licences on 31st
January 1948 (scil. as a result of non compliance with the
Commissioner's circular) and to protect the plaintiff's rights
pending further negotktions.
The defendant also executed on 30th January 1948
applications for the issue of licences in his name but he did
not ledge these applications until 19th April 1948.
Ih the meantime on 17th February 1948 the
plaintiff and defendant met at the latter's dwelling place.
The plaintiff asked him for some money. The material part of
the conversation is not in dispute. The plaintiff said that
according to the last agreement drawn up the defendant was
supposed to pay him £15 a week for three years. The defendant
replied that that was only while the licences were in the
plaintiff's name. The plaintiff said that that was the clause
in the agreement which he wanted altered. The defendant then
said "you transfer the licences (or plates) to me and I will
continue to pay you the £15 a week." The defendant said that
he would go to his solicitors and have the agreement altered.
The plaintiff assented and said that he would go to his
solicitors. Qn the same day the plaintiff's solicitors wrote
to the defendant's solicitors confirming the conversation.
They put it, however, not as a concluded agreement but. as an
expression of willingness to agree upon a variation of the
agreement, For after stating the effect of the arrangement
they added the words "provided that your client varies the
agreement dated the 20th August 1947 to incorporate such arrange-
8.
ment", and in a later part of the letter they used the
expression "if this arrangement is come to", To this the
defendant's solicitors replied that it was true that the defendant
was prepared to pay the plaintiff the sum of £15 per week for
the balance of the terms of three years providing that the
plaintiffs transferred to the defendant the plates of the carrying
pus-iness. The letter proceeded "you might therefore ask your
client to request the Commissioner for Transport to have the
plates transferred to our client and we would suggest that a
short amended form of agreement be completed by our respective
client thus putting the matter in order". Upon receipt of this
letter the plaintiff's solicitors at once informed the
Commissioner that both parties had come to an agreement in regard
to the carrying on of the service and the payment of the balance
of yurchase money, and sent him copies of the letters. They
requested the Commissioner to advise them whether he was
pre pared to proceed with the issue of the licences as previously
arr anged, But in stating that the plaintiff proposed to comply
with the requirements which the Commissioner had laid down as
early as 16th December 1947, the letter introduces the statement
with the expression "subject to the preparation approval and
exe cution of a suitable agreement between the parties."
It is convenient to pause at this point for the
purpose of considering whether in spite of the expressions
comtained in the plaintiffs solicitors letters the parties had
reached a concluded agreement by which the defendant agreed to
pay the plaintiff for the residue of the three years the weekly
sum of £15 if the plaintiff would cause a licence forth with
to be issued in the defendant's name".
Mansfield 8.P.J. found that such an agreement
was made, His Honour said "On the 17th February 1948 it was
verbally agreed between the plaintiff and the defendant that
the defendant would pay to the plaintiff the sum of £15 per week
for the balance of the period of three years, that is from 20th
August 1947, if the plaintiff would transfer the licences to the
defendant", This finding was upheld in substance by the Full
9.
Court, although the formation of the contract was placed
rather on the offer of a promise by the defendant for an act.
The question however necessarily presents itself whether the
parties did not intend that the making of a written contract
should be a condition or term of the arrangement so that,
unless and until such 9 document was agreed upon and executed,
the arrangement would have no binding operation. No doubt
there is mich in the correspondence which may be used with
more or less plausibility in support of the view that when
on 17th February 1948 the plaintiff and the defendant ended
the conversation, in which they had reached accord, by agree-
ing to go to their respective solicitors they meant to treat
the preparation of a formal document as more than an express-
ion or record of an agreement they had already concluded and
looked upon it rather as the process which would produce a
contract between them from what they had only tentatively
arranged, It is seldom easy when such a question arises
to say whether the given case falls within such authorities
as Barrier Wharfs Ltd, v. Scott Fell 1908 5 C.L.R. 647:
Farmer v,. Honan 1919 26 G.L.R. 183 and Sinclair Scott & Co. Ve
Naughton 1929 43 0.L.R. 310 and Summergreene v. Parker 1950
80 C.L.R. 304 on the one hand or on the other hand within such
as Niessman v. Collingridge 1921 29 C.L.R. 177 and Lennm v.
Scarlett 1921 29 C.L.R. 499, to mention only cases decided in
this Court, Here however we are dealing with an oral agree-
ment and the meaning of such an agreement is always to be
decided as a matter of fact. There are concurrent findings
that what was said amounted to a definitive promise. While
it is true that the letters of the plaintiff's solicitors
represent the arrangement as subject to the preparation
approval and execution of a formal document, that may be
accounted for less by the writer's conception of what was
intended by the two parties to the conversation of 17th
February than by a desire on his part to hold the matter open,
fearing that his client had gone too far and had committed
himself to his possible disadvantage. Further it must be
remembered that the matter agreed was extremely simple. The
variation of 20th August 1947 contemplat-
10,
ed a weekly payment for three years and then a making over of
the licences to the defendant. If there was an immediate issue
of the licence to the defendant there was, as the defendant
appeared to be saying, nothing to compel him to continue the
payments, All they were deciding on 17th February 1948 was
that if a present transfer or issue of the licence to the
defendant was obtained, he should nevertheless continue to be
liable to pay the £15 a week until the end of the period of
three years from 20th August 1947. To agree upon this simple
proposition finally would involve no difficulty about
consequential or subsidiary terms.
In all the circumstances it seems right on this
appeal to accept the conclusion that the parties made a
definitive agreement on 17th February 1948. It is not
necessary to consider whether the Statute of Frauds could have
been pleaded on the ground that the oral agreement varied the
agreement of 1st August 1947 and that the latter was an agree-
ment not to be performed within the space of one year from the
making thereof. For in fact the statute was not pleaded or
relied upon in the argument of this appeal. The plaintiff's
solicitors having informed the Commissioner at once of the
position reached the latter answered on 17th March 1948 that he
would issue a licence to the defendant as from 1st. April 1948.
if the latter complied with the requirements that he had already
stated that is on 16th December 1947. This answer was sent to
the defendant's solicitors. But it contained the information
that the licence fee would be 15 per cent of the gross revenue
derived from the service, This would greatly exceed the total
amount of the fees payable under the old licences. The
defendant however did not then raise any objection on this score
and it can hardly have surprised him, in view of the changes
made by and under the State Transport Facilities Acts. of
course the purpose of doing so was to put himself in a position
to issue a new licence to the defendant. It is important to
notice that the Commissioner's notification meant that he
would accept the surrender as from 31st March 1948 and this he
lil.
apparently did. The plaintiff's solicitors prepared a draft
agreement embodying what the parties had agreed upon on 17th
February 1948. The defendant did not visit the office of the
Commissioner as he had been requested to do and he did not
execute or accept the agreement. On 21st April 1948 his
solicitors informed the plaintiff's solicitors that he would
not sign it and intended to rely upon the agreements already
executed between himself and the plaintiff, In the meantime
several things had happened. In the first place the Commissiore1
had given the defendant a permit or permits to carry on the
service and had called in or confiscated the plaintiff's. The
permits had a months duration but they were renewed month by
month, The the defendant had sent in his application for a
licence. On the same day the plaintiff's solicitors had
informed the Commissioner that the defendant had not signed the
agreement and had asked the Commissioner to hold his hand and
this the Commissioner communicated.to the defendant. The
plaintiff's solicitors informed the solicitors for the defendant
that they could not allow the licence to issue to the defendant
unless he would carry out the new arrangement. They replied
that he would not sign the agreement prepared but would rely on
the agreement already executed.
However on 12th May 1948 the defendant again
applied to the Commissioner for the issue to him.of the plates
previously in the plaintiff's name, and on 18th May 1948 the
Plaintiff's solicitors wrote requesting the Commissioner to
issue to the defendant licences in respect of the carrying
service previously carried on by the plaintiff between Redcliffe
and Brisbane. They informed the defendantS solicitors that
they had done so and that they relied on the agreement of 17th
February 1948. The defendant's solicitors took up the position
that as from 1st April 1948 the plaintiff's licences had ceased
and the defendant was under no further liability to pay
instalments to the plaintiff, a view which both as to the fact
and the consequence the plaintiff's solicitors contested. From
this time forward it remained only for the defendant to comply
12.
Commissioner's
with the/requirements already stated in order to obtain a
licence. He however continued the service under the monthly
permits. Communications from the Commissioner made it clear
to him thet a licence would issue to him and indeed pressed
him to take the necessary steps, He attended the Commissioner's
office and supplied some of the necessary information and
documents, and nominated vehicles but he did not complete the
formal requirements. At length on 3rd November 1948 he
informed the Commissioner that he in turn had sold the carrying
business and asked him to issue the licence in the name of the
purchaser from him. The State Transport Facilities Acts
contain a provision forbidding the sale of a licensed service
unless twenty~one days notice to the Commissioner is first
given: sec,42. Apparently the defendant failed to comply
with this provision. He was called upon on this ground and
on the ground of his failure to comply with the requirements of
the Commissioner to show cause why a licence should issue to
him. After various communications between him and the
Commissioner the latter informed him on 4th March 1949 that it
had been decided to issue a licence to him for the carriage of
goods between Brisbane and Redcliffe from 1st. March 1949 to
3lst January 1951 at a fee of ten per cent of the gross revenue.
On 25th March 1949 a licence was in fact issued to him, This
is clearly the fact though in his evidence he did not admit it.
A month later he sought to transfer the licence to the
purchaser but again he disregarded sec.42. It does not appear
what the fate of the licence has been nor is its further
history material to the case.
What is material is that before this time, namely
on 13th December 1948, the plaintiff had issued the writ in
this action without waiting for the effluxion of the three years
from 20th August 1947. The instalments of £15 paid by the
defendant amounted to £375 making, with the £1500 paid as a
deposit, £1875. Further moneys he refused to pay. He
maintained the stand he had taken that at the end of March 1948
he ceased to be liable to pay to the plaintiff any further
weekly sums of £15 because he was thenceforward operating
under the permits to him and not under the plaintiff's licences,
which, having been surrendered, were cancelled,
Mansfield S.P.J. treated the defendants
liability as governed by the oral agreement of 17th February
1948. But His Honour said "The defendant had the use of the
plates and licences which remained in the name of the plaintiff
until the 30th March 1948 on which date they were cancelled.
In my opinion the licences contemplated by the agreement have
not been transferred to the defendant and the plaintiff has
therefore failed to prove a condition precedent to his
recovery of the sum of £15 for the balance of the three years'
period." His Honour found that besides the sum of £1500 the
defendant had paid only £375 on account of the weekly payments
and that £120 remained due that is on the footing that after
the end of March 1948 no further liability to make them accrued.
In the Full Court the view that the defendant
ceased to be liable to further payments at the end of March
1948 was not accepted, Townley J. who delivered the judgment
of the Court expressed the view that although it was a condition
that the defendant should obtain the licences he too was under
an implied obligation to do within a reasonable time all that
was necessary for him to do to obtain them and that obligation
he had broken, Further he had repudiated his obligation to
make the weekly payments and this was before writ issued.
He was liable, so it was held, for the arrears of weekly pay-
ments up to the date of the issue of the writ, a sum fixed at
£548.11.5, and thereafter in damages representing the present
value as at that date of the then future weekly payments to
20th August 1950. These then future payments were calculated
(erroneously as it now appears) as amounting to £1666.8.7 the
present value of which as at 13th December 198 was fixed by
the Registrar at £1564.8.7. This sum and that of £548.11.5
amount to £2113.9.0.
The first step taken by the defendant appellant
in attacking the conclusions of the Full Court was to dispute
ike
the view that a contract resulted from the accord reached by
the plaintiff and the defendant on 17th February 1948, For
reasons to be given later, it does not seem to aid
the defendant even if he succeeded in this contention, But
the ground upon which he supported the contention was that it
amounted on the defendants part to an offer of a promise for
an act namely the procuring the Commissioner to issue a licence
to the defendant. and that before the act was done he (the
defendant) had retracted the offer.
It is sufficient to say that this contention
gives the arrangement on 17th February an erroneous complexion.
It was not an offer of a promise for an act but an immediate
agreement to vary the terms of a prior contract still
executory so that the consideration should be payable in the
specified instalments in a different event. It is true that
the parties regarded the prior contract as composed of the
original agreement and of a variation and that the variation
was in fact illegal and void, although they did not or
probably did not so regard it. But the new variation would
replace the illegal variation and operate on the original
contract which was not illegal.
Adopting the view that there was an immediate
oral variation and that it resulted in the consideration
becoming £1500 (already paid) and a weekly sum of £15 payable
until 20th August 1950, the plaintiff procuring a licence for
the defendant, that meant that the plaintiff must do on his
part what was necessary and sufficient to secure the issue to
the defendant of a licence, the defendant doing all that he
reasonably could be expected to do to fulfil the conditions on
his part to be observed and. performed by him as the person to
whom the licence was to issue.
For the defendant appellant it was then contendec
that the plaintiff had failed in the performance of essential
conditions without the fulfilment of which he was not entitled
to.the weekly payments forming part of the consideration.
First it was said that the plaintiff had not caused the licence
to ve issued "to the defendant but on the contrary the defendant
had obtained the permits under which he carried on the
business, and alternatively the licence, independently and,
so to speak, not derivatively from the plaintiff but by an
original title. The answer to this lies in the facts.
Whatever mistakes the plaintiff may have made in attempting to
restrain the issue. by the Commissioner of a licence until the
defendant resumed the performance of his liabilities, the
contract remained open and before it was too late the
Plaintiff made an unconditional request to the Commissioner to
issue the licence to the defendant. Backed as this was by
the surrender he had long since lodged, by the approval of the
Governor in Council and by the willingness of the Commissioner
to license 'the defendant on his complying with the necessary
conditions, no more remained for the plaintiff to do. The
defendant: being in possession of the permits delayed the
performance of his obligations without which a licence could
not issue. The permits were however the consequence of the
plaintiffs having sought to effect a transfer of the licence
by its surrender and reissue, and they represented an ad
interim method of carrying forward the completion of the
contract. The defendant had denied his obligations under the
agreement as varied on 17th February 1948 and the default which
delayed complete fulfilment was his. Secondly it was said
for the defendant that. the licence issued subject to a fee of
ten Percent of the revenue was a different thing from the
licence contracted for. The aggregate fees for the three
licences under the repealed legislation amounted only to
£4.8,8, a month. But the agreement. was made in a condition
of the law which gave the Commissioner authority to fix the
fee and in all other material respects the licence was that
contemplated. The alteration of the fee was a risk which
fell upon the purchaser. The fact is that the defendant
obtained and enjoyed the assets and goodwill of the plaintiff's
business including the privilege of carrying on the trade and
that substantially is what he bargained to get. He cannot
16.
while retaining and enjoying these tangible and intangible
assets resist payment of the consideration moneys.
The delay that was experienced was in part due
to the parties making and acting upon the agreement of
variation bad for illegality but it was due in greater part,
and later on altogether, to the defendants' own refusal or
failure to perform the duties of coeperation in obtaining the
licence which such an agreement always implies. To place
upon him such an obligation is no more than an application of
the general rule stated by Lord Blackburn in Mackay v. Dick
1881 L.R. 6 A.C. 251 at p.263 that where in a written contract
it appears that both parties have agreed that somthing shall
be done which cannot effectually be done unless both concur
in doing it, the construction of the contract is that each
agrees to do all that is necessary to be done on his part for
the carrying out of that thing though there may be no express
words to that effect.
If the view were taken that the conversation of
17th February 1948 between the plaintiff and defendant did
not amount to a concluded agreement varying the former contract
or contracts the defendant would hardly be better off. Then
the situation would be that the parties would be thrown back
on the original contract of Ist August 1947. They would
have proceeded, on the mistaken supposition that they were
bound by the variation of 20th August 1947, to carry it out by
a substituted method of performance. Then at the defendants
instance the plaintiff surrendered his licence to enable the
defendant to obtain a licence. Long as the process was and
much as it deviated in detail from the performance contemplated
by the original agreenent, the result was that which the
defendant had bargained for and the delay in obtaining the
result was due, as to the earlier part, to what he concurred
in and, as to the later part, to his own default. Having
obtained in substance what he bargained for and having
obtained it in consequence of the contract he could not be
allowed to escape payment of the consideration moneys.
17.
There is no counterclaim by the defendant for damages for any
breach by the plaintiff of any obligation express or implied
on his part to be performed. On this footing the plaintiff
would be entitled to the unpaid balance of the full consider-
ation of £4000. But accepting the view that an oral agree-
ment of variation was concluded on 17th February the consider-
ation money to which the plaintiff became entitled was £380
consisting of £1500 deposit end £2340 being £15 a week for
three years,
The view of the Full Court that the defendant's
refusal further to pay the weekly sums enabled the plaintiff
to sue for the present value of future payments as damages
has not been contested.
A mistake however wes made in the Full Court in
stating that £1666,8.7 was the balance left after deducting
from £1965 the amount of instalments which fell due up to and
before the issue of the writ, that is £548.11.5. The balance
is £1)16.8,7. The sum of £1965 is the excess of the total
amount of the weekly payment for three years,£2340, after
deducting the amount of the weekly payments actually made
wiz: £375.
The order of the Full Court should therefore be
varied by directing that judgment should be entered for
£548.11.5 together with the present value as on 12th December
1948 of £1416.8.7 payable in weekly amounts of £15 each and by
directing an inguiry by the Registrar of the Supreme Court to
ascertain the amount of such present value, unless the parties
agree upon it.
The misteke if discovered in time might have
peen corrected without an appeal and indeed it was not
expressly mentioned in the notice of appeal to this Court.
But the correction of the mistake might have involved some
costs. A deduction of £20 from the costs of the appeal will
be sufficient.
Subject to the above variation the appeal
should be dismissed with costs to be taxed less £20.
Related laws
No related documents linked yet.
You've got 21 of 22 free Acts left this visit. Sign up anytime for Facts, Related, and study briefs too.