Li v Tang [2021] NSWSC 1011

Supreme Court New South Wales

Medium Neutral Citation: Li v Tang [2021] NSWSC 1011 Hearing dates: 15 – 17, 23 June 2021 Date of orders: 12 August 2021 Decision date: 12 August 2021 Jurisdiction: Common Law Before: Schmidt AJ Decision: 1. Judgment entered for Mr Li 2. Final orders reserved. Catchwords: CONTRACTS – Formation – Oral agreement – Commercial purpose – Parties and terms CONTRACTS – Express term of written agreement – Guarantee by director who is not a party to contract – Whether director who executes agreement for company is personally bound by guarantee CONTRACTS – Unjust contracts – Contracts Review Act 1980 (NSW) – Business contracts – Whether agreements unfair – Whether interest rate involves a penalty CONTRACTS – Whether contract which cannot deliver bargain is enforceable – How interest is to be calculated CONTRACTS – Charge – Whether charge is valid – Whether charge is enforceable CONTRACTS – Termination – Repudiation of contract – Whether contract repudiated – Whether acceptance of repudiation affects a party's rights – Whether charge survived termination Legislation Cited: Australian Consumer Law (Cth) ss 20, 21 Australian Securities and Investments Commission Act 2001 (Cth) ss 12CA, 12CB Competition and Consumer Act 2010 (Cth) s 131A Contracts Review Act 1980 (NSW) ss 4, 6(2), 7, 9 Conveyancing Act 1919 (NSW) s 12 Corporations Act 2001 (Cth) s 1071B, 1072F Civil Procedure Act 2005 (NSW) s 56 Evidence Act 2005 (NSW) s 128 Uniform Civil procedure Rules 2005 (NSW) Cases Cited: Australian Bank Limited v Stokes (1985) 3 NSWLR 174 Awadallah v Hymix Australia Pty Ltd (2015) 17 BPR 33,953; [2015] NSWSC 117 Baltic Shipping v Dillon (1991) 22 NSWLR 1 Beil & Anor v Pacific View (Qld) Pty Ltd & Ors [2006] 2 Qd R 499; (2006) QSC 19 Big Kahuna Holdings Pty ltd v Kitas [2012] NSWSC 61 CIT Credit Pty Ltd v Keable [2006] NSWCA 130 Clark Equipment Credit of Australia Ltd v Kiyose Holdings Pty Ltd (1989) 21 NSWLR 160 Concrete Constructions (NSW) Pty Ltd v Nelson (1990) 169 CLR 594 [1990] HCA 17 Danthanarayana v GR8 Constructions Pty Ltd (2012) 201 FCR 347; [2012] FCA 23 Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1914] UKHL 1; [1915] AC 79 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Equuscorp Pty Ltd v Glengallan Investments (2004) 218 CLR 471; [2004] HCA 55 Ford bht Watkinson v Perpetual Trustees Victoria Ltd (2009) 75 NSWLR 42; [2009] NSWCA 186 Galadriel Lothlorien Pty Ltd v Station 1 Pty Ltd [2008] NSWSC 9 Guardian Mortgages v Miller [2004] NSWSC 1236 Imperial Chemical Industries plc v EchoTasmanis Pty Ltd [2007] FCA 1731 King Investment Solutions v Hussain 64 NSWLR 441; [2005] NSWSC 1076 Kowalczuk, v Accom Finance Pty Ltd (2008) 77 NSWLR 205; [2008] NSWCA 343 Lawrence v Ciantar [2020] NSWCA 89 McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457 McCosker v Lovett (1995) 7 BPR 14,507; (1995) 12 BCL 146 Morris Finance Ltd v Free [2017] NSWSC 1417 Paciocco v Australia and New Zealand Banking Group Limited [2016] HCA 28 Perpetual Trustee Co Ltd v Khoshoba [2006] NSWCA 41 Provident Capital Ltd v Naumovski [2013] NSWSC 40 Provident Capital Ltd v Papa [2013] NSWCA 36 RAMS Mortgage Corporation Ltd v Skipworth (2007) 239 ALR 799; [2007] WASC 24 RHG Mortgage Limited v Rosario Ianni [2015] NSWCA 56 Ringrow Pty Ltd v BP Australia Pty Ltd (2005) 224 CLR 656; [2005] HCA 71 Scottish Amicable Life Assurance Society v Reg Provident Insurances Pty Ltd (1985) 9 ACLR 909 Singh v De Castro; Dhaliwal v De Castro; Brar v De Castro [2017] NSWCA 241 Toll (FGCT) Pty Ltd v Alpha Pharm Pty Ltd 79 ALJR 129 [2004] HCA 52 Toscano v Holland Securities Pty Limited (1985) 1 NSWLR 145 Wenham & Anor b Ella (1972) 127 CLR 454; [1972] HCA 43 West v AGC (Advances) Limited (1986) 5 NSLWR 610 Wilton v Farnworth (1948) 76 CLR 64 Category: Principal judgment Parties: Weijian Li (Plaintiff) Frank Tang (First Defendant) Yanjuan Guan (Second Defendant) National Australia Bank Ltd (Third Defendant) Representation: Counsel: Mr A Macauley (Plaintiff) Ms J Mee (First & Second Defendants)