Zhang v BM Sydney Building Materials Pty Ltd [2016] NSWCA 166

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Zhang v BM Sydney Building Materials Pty Ltd [2016] NSWCA 166 Hearing dates: 27 June 2016 Date of orders: 19 July 2016 Decision date: 19 July 2016 Before: McColl JA at [1], Ward JA at [74], Sackville AJA at [75] Decision: Appeal dismissed with costs. Catchwords: CONTRACT – contractual construction – commercial credit facility and supply agreement – deed of guarantee signed by appellant – whether documents effective to create either primary liability on company's part or liability as guarantor on appellant's part – whether strictissimi juris principle of construction enlivened

CONTRACT – execution of document by individual holding offices of both director and company secretary – whether execution complied with Corporations Act 2001 (Cth), s 127(1) – whether creditor entitled to make assumption credit facility duly executed – Corporations Act 2001 (Cth), s 129(5) Legislation Cited: Corporations Act 2001 (Cth) Cases Cited: AFC Holdings Pty Ltd v Shiprock Holdings Pty Ltd [2010] NSWSC 985; (2010) 15 BPR 28,199 Andar Transport Pty Ltd v Brambles Ltd [2004] HCA 28; (2004) 217 CLR 424 Ankar Pty Ltd v National Westminster Finance (Australia) Ltd [1987] HCA 15; (1987) 162 CLR 549 Australian Broadcasting Commission v Australasian Performing Right Association Ltd [1973] HCA 36; (1973) 129 CLR 99 Beaufort Developments (NI) Ltd v Gilbert-Ash NI Ltd [1999] 1 AC 266 Black & Decker Inc v GMCA Pty Ltd (No 2) [2008] FCA 504; (2008) 76 IPR 99 Bofinger v Kingsway Group Ltd [2009] HCA 44; (2009) 239 CLR 269 Caratti v Mammoth Investments Pty Ltd [2016] WASCA 84 Chan v Cresdon Pty Ltd [1989] HCA 63; (1989) 168 CLR 242 Coghlan v SH Lock (Australia) Ltd (1987) 8 NSWLR 88 Correa v Whittingham [2013] NSWCA 263; (2013) 278 FLR 310 Dobbs v National Bank of Australasia Limited [1935] HCA 49; (1935) 53 CLR 643 EDWF Holdings 1 Pty Ltd v EDWF Holdings 2 Pty Ltd [2010] WASCA 78; (2010) 41 WAR 23 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640 Equuscorp Pty Ltd v Glengallan Investments Pty Ltd [2004] HCA 55; (2004) 218 CLR 471 Fitzgerald v Masters [1956] HCA 53; 95 CLR 420 Hillas & Co Ltd v Arcos Ltd (1932) 147 LT 503 Hoyt's Pty Ltd v Spencer [1919] HCA 64; (1919) 27 CLR 133 Manks v Whiteley [1912] 1 Ch 735 Metropolitan Gas Co v Federated Gas Employees' Industrial Union [1925] HCA 5; (1925) 35 CLR 449 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37; (2015) 89 ALJR 990 Rava v Logan Wines Pty Ltd [2007] NSWCA 62 Soyfer v Earlmaze Pty Ltd [2000] NSWSC 1068 Victoria v Tatts Group Ltd [2016] HCA 5; (2016) 90 ALJR 392 Zhu v Treasurer (NSW) [2004] HCA 56; (2004) 218 CLR 530 Texts Cited: Lewison and Hughes, The Interpretation of Contracts in Australia, (2012, Lawbook Co) (Lewison and Hughes) R H Kersley, Broom's Legal Maxims, (10th ed 1939, Sweet & Maxwell Limited) Category: Principal judgment Parties: Hui Zhang (Appellant) BM Sydney Building Materials Pty Limited (Respondent) Representation: Counsel: P Bolster (Appellant) BK Nolan (Respondent)