Motor Yacht Sales Australia Pty Ltd t/as The Boutique Boat Company v Cheng [2021] NSWSC 1141

Supreme Court New South Wales

Medium Neutral Citation: Motor Yacht Sales Australia Pty Ltd t/as The Boutique Boat Company v Cheng [2021] NSWSC 1141 Hearing dates: 24-26, 28 May 2021 Date of orders: 10 September 2021 Decision date: 10 September 2021 Jurisdiction: Common Law Before: Payne JA Decision: Amended statement of claim: (1) Defendant to pay the plaintiff damages in the sum of $62,720; (2) Defendant to pay the plaintiff's costs of the proceedings; (3) Pursuant to s 100 of the Civil Procedure Act 2005 (NSW), defendant to pay pre-judgment interest on the principal sum of $62,720 for the period from 10 January 2017 to 10 September 2021 at the rate identified by Practice Note SC Gen 16. Amended statement of cross-claim: (1) Cross-claim dismissed with costs. Catchwords: CONTRACTS – formation – acceptance of offer – whether offer to purchase vessel accepted orally or in writing prior to purported withdrawal of offer – binding contract formed by acceptance of offer prior to withdrawal CONTRACTS – express terms – precontractual statements – whether contract for sale of vessel included a term that the vessel would "fit" in a dock – no representation made that the vessel would "fit" in the dock CORPORATIONS – contracts – agency – whether contract entered into with the express or implied authority of the company – implied authority to bind company to contract through acquiescence of the board DAMAGES – mitigation of loss – whether costs incurred in mitigation are too remote to be recovered – mitigation results in crystallisation of loss Legislation Cited: Civil Procedure Act 2005 (NSW), s 100 Competition and Consumer Act 2010 (Cth), Sch 2 – Australian Consumer Law, ss 18, 21 Contracts Review Act 1980 (NSW), s 7 Corporations Act 2001 (Cth), ss 124, 126, 198A, 198C, 198D District Court Act 1973 (NSW), s 44 Justice Legislation Amendment Act (No 3) 2018 (NSW) Sale of Goods Act 1923 (NSW), ss 19, 52 Supreme Court Rules 1970 (NSW), r 14.2 Cases Cited: Australian Medic-Care Co Ltd v Hamilton Pharmaceutical Pty Ltd [2009] FCA 1220; (2009) 261 ALR 501 Biggerstaff v Rowatt's Wharf Ltd [1896] 2 Ch 93 Birjandi v Todaytech Distribution Pty Ltd [2005] WASCA 44 Brick and Pipe Industries Ltd v Occidental Life Nominees Pty Ltd [1992] 2 VR 279 Burns v MAN Automotive (Aust) Pty Ltd (1986) 161 CLR 653; [1986] HCA 81 Cahill v Kiversun Pty Ltd [2017] VSC 641 Castle Constructions Pty Ltd v Fekala Pty Ltd (2006) 65 NSWLR 648; [2006] NSWCA 133 Colin R Price & Associates Pty Ltd v Four Oaks Pty Ltd (2017) 251 FCR 404; [2017] FCAFC 75 Cordon Investments Pty Ltd v Lesdor Properties Pty Ltd [2010] NSWSC 1073 Equiticorp Finance Ltd (in liq) v Bank of New Zealand (1993) 32 NSWLR 50 Fenridge Pty Ltd v Retirement Care Australia (Preston) Pty Ltd [2013] VSC 464 Fox v Wood (1981) 148 CLR 438; [1981] HCA 41 Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480 Golden Strait Corporation v Nippon Yusen Kubishika Kaisha [2007] 2 AC 353 Hely-Hutchinson v Brayhead Ltd [1968] 1 QB 549 Hightime Investments Pty Ltd v Adamus Resources Ltd [2012] WASC 295 James v Surf Road Nominees Pty Ltd (No 2) [2005] NSWCA 296 Junker v Hepburn [2010] NSWSC 88 Northside Developments Pty Ltd v Registrar-General (1990) 170 CLR 146; [1990] HCA 32 Nova 96.9 Pty Ltd v Natvia Pty Ltd [2018] NSWSC 1288 Sacher Investments Pty Ltd v Forma Stereo Consultants Pty Ltd [1976] 1 NSWLR 5 Sapphire Suite Pty Ltd v Bellini Lounge Pty Ltd [2018] NSWDC 160 Simonius Vischer & Co v Holt [1979] 2 NSWLR 322 The NTF Group Pty Ltd v PA Putney Finance Australia Pty Ltd [2017] NSWSC 1194 Unity Insurance Brokers Pty Ltd v Rocco Pezzano Pty Ltd (1998) 192 CLR 603; [1998] HCA 38 Wenkart v Pitman (1998) 46 NSWLR 502 Texts Cited: GE Dal Pont, The Law of Agency (4th ed, 2020, LexisNexis) JW Carter, Carter on Contract (2016, LexisNexis) NC Seddon and RA Bigwood, Cheshire & Fifoot Law of Contract (11th ed, 2017, LexisNexis) RP Austin, HAJ Ford and IM Ramsay, Company Directors: Principles of Law and Corporate Governance (2005, LexisNexis Butterworths) Category: Principal judgment Parties: Motor Yacht Sales Australia Pty Ltd t/as The Boutique Boat Company (Plaintiff; Cross-Defendant) Jian Ling Cheng (Defendant; Cross-Claimant) Representation: Counsel: M Hall (Plaintiff; Cross-Defendant) J Mitchell (Defendant; Cross-Claimant)