Lamont v Heron [1970] HCA 47

High Court of Australia Barwick C.J. McTiernan, Owen, Walsh and Gibbs JJ. Lamont v Heron [1970] HCA 47

ORDER Appeal dismissed with costs. Barwick C.J.

In this matter the appellants on 21st January 1969 gave to the respondent in writing an option to purchase a parcel of land owned by them at Wyoming in the Shire of Gosford comprising about eleven acres for a cash price of $22,000. The document was in the following terms:

In consideration for the sum of one dollar ($1.00) we hereby grant to Mr. B. S. Heron, 30 days option to purchase Lot 13 in Deposited Plan 22207 Parish of Gosford Shire of Gosford County of Northumberland having a frontage to Day Street, Wyoming and an area of about 11 acres for the sum of $22,000 cash.

On 19th February 1969, the respondent sent to the appellants and on that day they received a telegram in the following terms:

Advise taking up our option Wyoming Street land as per option given by you stop Letter following.

On the same day, 19th February 1969, the respondent wrote to the appellants a letter which contained the following relevant paragraphs:

I wish to advise that I am taking up the option granted to me by you and your wife as per your letter of 21st January 1969, for approximately 11 Acres of Residential Land being Lot 13 in D. P. 22207, Day Street, Wyoming for a figure of $22,000.

Please forward a contract for approval to my Solicitors, Burridge & Legg, 14 The Centre, Forestville.

The appellants received that letter on 20th February 1969.

At the suit of the respondent the Supreme Court in Equity ordered the specific performance of the contract to sell and to purchase the land which the learned judge constituting the Court held to be formed by the grant of the option and its exercise which his Honour held to be effected by the respondent's letter of 19th February.