Ryledar Pty Ltd & Anor v Euphoric Pty Ltd [2007] NSWCA 65

Reported Decision: (2007) Aust Contract Reports 90-254 Appeal Outcome: Special leave refused with costs by the High Court - 16 November 2007

New South Wales Court of Appeal

CITATION: Ryledar Pty Ltd & Anor v Euphoric Pty Ltd [2007] NSWCA 65 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S): 13 February 2007

JUDGMENT DATE: 20 April 2007

JUDGMENT OF: Mason P at 1; Tobias JA at 2; Campbell JA at 257

DECISION: Appeal dismissed with costs.

CATCHWORDS: CONTRACTS – General contractual principles – Construction and interpretation of contracts - EQUITY – Rectification – Mistake as to the effect of the deliberately chosen words – Requirement of clear and convincing proof of a common intention inconsistent with the words deliberately employed – Whether objective evidence of common intention renders evidence of subjective intention irrelevant - ESTOPPEL – Estoppel by convention - ESTOPPEL – General principles – Whether an estoppel continues if the contract is renewed - CONTRACTS – General contractual principles – Options to renew – Whether the exercise of an option is conditionally valid but subject to defeasance if a party goes into breach of a condition precedent to the option after the exercise of the option but before the end of the original term

Fair Trading Act 1987 LEGISLATION CITED: Supreme Court Rules 1970 Trade Practices Act 1974 (Cth)

Air Great Lakes Pty Limited v K S Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 Amalgamated Investment & Property Co Ltd v Texas Commercial International Bank Ltd (in liq) [1982] QB 84 Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 Australian Co-operative Foods Ltd v Norco Co-operative Ltd (1999) 46 NSWLR 267 Australian Hardwoods Pty Ltd v Commissioner for Railways [1961] 1 All ER 737 [1961] 1 WLR 425 Baker v Paine (1750) 1 Ves Sen 456 Ball v Storie (1823) 1 Sim & St 210 57 ER 84 Bishopsgate Insurance Australia Ltd v Commonwealth Engineering (NSW) Pty Ltd [1981] 1 NSWLR 429 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd (2001) 117 FCR 424 Calverley v Williams (1790) 1 Ves Jr 210 30 ER 306 Club Cape Schanck Resort Co Ltd v Cape Country Club Pty Ltd (2001) 3 VR 526 Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 Commissioner of Stamp Duties (NSW) v Carlenka Pty Ltd (1995) 41 NSWLR 329 Commonwealth v Verwayen (1990) 170 CLR 394 Con-Stan Industries of Australia Pty Ltd v Norrich Winterthur Insurance (Australia) Ltd (1986) 160 CLR 226 Crane v Hegeman-Harris Co Inc [1971] 1 WLR 1390 Earl v Hector Whaling Ltd [1961] 1 Lloyd's Rep 459 Elders Trustees & Executor Co Ltd v E G Reeves Pty Ltd (1987) 78 ALR 193 Equus Corp Pty Ltd v Glengallan Investments Pty Ltd [2006] QCA 194 Farrow Mortgage Services Pty Ltd (in liquidation) v Slade and Nelson (1996) 38 NSWLR 636 Fowler v Fowler (1859) 4 De G & J 250 45 ER 97 Frederick E Rose (London) Ltd v William H Pim Jnr & Co Ltd [1053] 2 QB 450 Gilbert J McCaul (Aust) Pty Ltd v Pitt Club Ltd (1959) 59 SR (NSW) 122 Green v AMP Life [2005] NSWSC 370 (2005) 13 ANZ Ins Cas 90-124 CASES CITED: Grundt v Great Boulder Pty Gold Mines Ltd (1937) 59 CLR 641 Hooker Town Developments Pty Ltd and Another v The Director of War Service Homes (1973) 47 ALJR 320 The Indian Grace (No. 2) [1998] AC 878 In Re Butlin's Settlement Trusts [1976] Ch 251 Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896 Joscelyne v Nissen [1970] 2 QB 86 Johnson Matthey Ltd v A C Rochester Overseas Corporation (1990) 23 NSWLR 190 Lion Nathan Australia Pty Ltd v Coopers Brewery Ltd (2005) 223 ALR 560 Mander v Clements (2005) 30 WAR 46 Maralinga Pty Ltd v Major Enterprises Pty Ltd (1973) 128 CLR 336 Magill v National Australia Bank [2001] NSWCA 221 MK & JA Roche Pty Ltd v Metro Edgely Pty Ltd [2005] NSWCA 39 Moratic Pty Ltd v Gordon [2007] NSWSC 5 Mortimer v Shortall (1842) 2 Dr & War 363 NSW Medical Defence Union Ltd v Transport Industries Insurance Co Ltd (1986) 6 NSWLR 740 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451 Prenn v Simmonds [1971] 1 WLR 1381 Pukallus v Cameron (1982) 180 CLR 447 River Wear Commissioners v Adamson (1877) 2 App Cas 743 Simpson v Vaughan (1739) 2 Atk 31 26 ER 415 Slee v Warke (1949) 86 CLR 271 State Rail Authority of NSW v Heath Outdoor Pty Ltd (1986) 7 NSWLR 170 Taylor v Johnson (1983) 151 CLR 422 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 Tonitto v Basral (1992) 28 NSWLR 564 Transport Industries Insurance Co Ltd & Ors v NSW Medical Defence Union Ltd (1986) 4 ANZ Ins Cas 60-736 Trawl Industries of Australia Pty Ltd v Effem Foods Pty Ltd (1992) 27 NSWLR 326 The Vistafjord [1988] 2 Lloyds Reports 343 Walterman v Gerling Australia Insurance Co Pty Ltd (2005) 65 NSWLR 300 Westland Savings Bank v Hancock [1987] 2 NZLR 21 Whittet v State Bank of New South Wales (1991) 24 NSWLR 146