Zhang v VP302 SPV & Ors [2009] NSWSC 73

New South Wales Supreme Court

CITATION : Zhang v VP302 SPV & Ors [2009] NSWSC 73

HEARING DATE(S) : 18-20 June 2008; 23, 24 and 27 June 2008

JUDGMENT DATE : 23 February 2009

JURISDICTION : Equity

JUDGMENT OF : White J

DECISION : Refer to para 133 of judgment.

CATCHWORDS : CONTRACTS - particular parties - principal and agent - solicitor amended terms of contract for the sale of land without actual authority of plaintiffs - solicitor exchanged amended contracts with other party - solicitor had ostensible authority to exchange contract - binding contract came into existence between the parties - TRADE PRACTICES - misleading and deceptive conduct - whether plaintiffs entered into sale of land contract because of representations made as to future management fees and future value of property - whether reasonable grounds for representations - plaintiffs did not rely on representations as to future management fees - plaintiffs relied on representations as to future value of property - representations not mere puffery - plaintiffs entitled to rescission of the contract and return of the deposit from the first and second defendants - CONTRACTS - unjust contracts - Contracts Review Act - plaintiffs' entry into contract induced by misrepresentations - contract is an unjust contract - if necessary, order for rescission pursuant to the Act

Trade Practices Act 1974 (Cth) Fair Trading Act 1987 (NSW) LEGISLATION CITED : Contracts Review Act 1980 (NSW) Conveyancing Act 1919 (NSW) Civil Procedure Act 2005 (NSW)

CATEGORY : Principal judgment

Pianta v National Finance and Trustees Ltd [1964] HCA 61; (1964) 180 CLR 146 Freeman & Lockyer (a firm) v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480 Summit Properties Pty Ltd v Comserv (No. 784) Pty Ltd (1981) 2 BPR 9173 CTM Nominees Pty Ltd v Galba Pty Ltd (1982) 2 BPR 9588 Magripilis v Baird [1926] St R Qd 89 Longpocket Investments Pty Ltd v Hoadley (1985) 3 BPR 9606 Rymark Australia Development Consultants Pty Ltd v Draper [1977] Qd R 336 Nowrani Pty Ltd v Brown [1989] 2 Qd R 582 Lockett v Norman-Wright [1925] 1 Ch 56 Eccles v Bryant [1948] 1 Ch 93 Domb v Isoz [1980] 1 Ch 548 Watson v Foxman (1995) 49 NSWLR 315 Yorke v Lucas [1985] HCA 65; (1985) 158 CLR 661 CASES CITED : Butcher v Lachlan Elder Realty Pty Ltd [2004] HCA 60; (2004) 218 CLR 592 Pappas v Soulac Pty Ltd (1983) 50 ALR 231 Eighth SRJ Pty Ltd v Merity (1997) 7 BPR 15,189 Petty v Penfold Wines Pty Ltd (1994) 49 FCR 282 Jainran Pty Ltd v Boyana Pty Ltd [2008] NSWSC 468 Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd [1982] HCA 44; (1982) 149 CLR 191 Campbell v Backoffice Investments Pty Ltd [2008] NSWCA 95; (2008) 66 ACSR 359 I & L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd [1999] QSC 320 I & L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd [2002] HCA 41; (2002) 210 CLR 109 Argy v Blunts & Lane Cove Real Estate Pty Ltd (1990) 26 FCR 112 Sutton v A J Thompson Pty Ltd (in liq) (1987) 73 ALR 233 Henjo Investments Pty Ltd v Collins Marrickville Pty Ltd (1988) 39 FCR 546 Smith v Land and House Property Corporation (1885) 28 ChD 7 Swindle v Knibb (1929) 29 SR (NSW) 325 Alati v Kruger (1955) 94 CLR 216 Attorney General of NSW v World Best Holdings Ltd [2005] NSWCA 261; (2005) 63 NSWLR 557