GREEN'S GENERAL FOODS PTY. LIMITED v SUNDOWN PASTORAL CO. PTY. LIMITED [1996] NSWCA 231

GREEN'S GENERAL FOODS PTY. LIMITED v SUNDOWN PASTORAL CO. PTY. LIMITED

SUPREME COURT OF NEW SOUTH WALES — COURT OF APPEAL

BEAZLEY JA, SIMos AJA and ABADEE AJA 7 November 1996

[1996] NSWCA 231

CONTRACT — for supply and erection of building — contract arising from acceptance of tender — contract requiring preparation of engineering drawings — engineering drawings prepared with co-operation of owner — building in engineering drawings structurally stronger and with extras — further tender at increased price did not constitute repudiation of original contract and was not proceeded with — condition as to obtaining of building approval not breached — wrongful repudiation of owner — owner liable for damages.

Simos AJA. In this matter, his Honour found that a contract had come into existence between the parties on 25 July 1991 when the appellant accepted a tender dated 23 July 1991 of the respondent for the sale, supply and erection of a basically prefabricated building on the land of the plaintiff. His Honour held that the contract was later wrongfully repudiated by the appellant and that the respondent had validly terminated the contract and was entitled to damages.

His Honour held that the agreement between the appellant and the respondent had come into existence onor about 25 July 1991 in the following circumstances. The respondent forwarded to the appellant a tender document entitled Order/Quotation No. 15157 for the supply and erection of a gabled triplex building in accordance with the enclosed sketch 901120/3, for the sum of $787,256. On 25 July 1991, the appellant forwarded to the respondent a letter dated 25 July 1991 together with a signed and dated copy of the Order/Quotation No. 15157 and a cheque for $23,617. His Honour held that these documents in the relevant circumstances brought into existence a contract as stated between the appellant and the respondent. In this connection, his Honour held: