CORBAN v LEVETT and ANOR [1996] NSWCA 120

CORBAN v LEVETT SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL

MAHONEY P, MEAGHER and BEAZLEY JJA 18 June 1996, 22 October 1996 [1996] NSWCA 120

CONTRACT — Whether binding and enforceable agreement for sale of land — Whether intention of patties to be bound — Terms of correspondence between the parties — Whether oral contract

Contract for sale of land — Appeal against finding by judge in Equity Division that no binding agreement for sale of land — Appellant owned land at Balgownie and claimed binding agreement to sell land to respondents — Evidence of conversations between parties on agreement as to price and amount of deposit — Subsequent payment of deposit by respondents — Contracts prepared but no exchange of contracts took place Whether binding and enforceable agreement for sale of land — Whether intention of parties to be bound — Terms of correspondence between the parties — Whether respondents estopped from denying existence of contract — Held: appeal dismissed, there was no contract-for the sale of the land because the respondents did not intend to enter a binding agreement unless and until contracts were formally exchanged. The estoppel argument fails because the appellant did not reasonably form and act on the opinion that a binding contract existed.

Masters v Cameron (1954) 91 CLR 353 applied. GR Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1987) NSW Conv R55-324 applied.

ORDER Appeal dismissed with costs.

Mahoney P In 1991 Mr Corban owned land at Balgownie. He claimed that a binding contract was made to sell the land to Mr and Mrs Levett. Mr and Mrs Levett claimed that no binding contract was made. Mr Corban sued Mr and Mrs Levett claiming specific performance, damages, and other relief. On 12 November 1992 Brownie J held that no binding contract had been made. His Honour dismissed Mr Corban's proceeding. He made an order in relation to the sum paid by Mr and Mrs Levett as deposit. Mr Corban has appealed to this Court against his Honour's judgment.