Prowl Pty Ltd v DL Brookvale Pty Ltd [2018] NSWSC 1255

Supreme Court New South Wales

Medium Neutral Citation: Prowl Pty Ltd v DL Brookvale Pty Ltd [2018] NSWSC 1255 Hearing dates: 5 to 7 March 2018, 4 May 2018, 14 June 2018 Decision date: 14 August 2018 Jurisdiction: Equity Before: Robb J Decision: See paragraphs 311 to 314 Catchwords: CONTRACTS — Construction — Interpretation — Whether the purchaser was required to pay the vendor the amount of GST payable by the vendor in respect of the taxable supply of the property — the meaning of "inclusive" and "exclusive" of GST in a contract for the sale of land — the proper construction of the contract does not require the purchaser to pay the GST payable by the vendor

CONTRACTS — Particular parties — vendor and purchaser CONTRACTS — general contractual principles — construction and interpretation of contracts CONTRACTS — Construction — Extrinsic evidence — Prior negotiations

CONTRACTS — Rectification — whether the plaintiff is entitled to rectification of the contract — the plaintiff is entitled to rectification of the contract CONTRACTS — Rectification — Intention — Common intention — whether the parties were shown to have had a "common intention" that was not reflected in the contract — whether the vendor and purchaser entered into the contract under a common mistake that the contract required the purchaser to pay the GST payable on the purchase price of the property Legislation Cited: A New Tax System (Goods & Services Tax) Act 1999 (Cth) Cases Cited: Igloo Homes Pty Ltd v Sammut Constructions Pty Ltd [2004] NSWSC 1213 Igloo Homes Pty Ltd v Sammut Constructions Pty Ltd [2005] NSWCA 280 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Victoria v Tatts Group Ltd [2016] HCA 5; (2016) 328 ALR 564 Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85; [2016] HCA 47 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd [2017] HCA 12; (2017) 343 ALR 58 Ryan v Fergerson (1909) 8 CLR 731 Walker v Citigroup Global Markets Australia Pty Ltd [2006] FCAFC 101; (2006) 233 ALR 687 Homburg Houtimport BV v Agrosin Private Ltd [2004] 1 AC 715 Bedroff Pty Ltd v Rennie [2002] NSWSC 928 Cherry v Steele-Park [2017] NSWCA 295; (2017) 351 ALR 521 SAMM Property Holdings Pty Ltd v Shaye Properties Pty Ltd [2016] NSWSC 362 SAMM Property Holdings Pty Ltd v Shaye Properties Pty Ltd [2017] NSWCA 132; (2017) 345 ALR 633 Powell General Sheet Metal Pty Ltd v Autopak Nominees Pty Ltd [2011] NSWSC 321 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Texts Cited: Cheshire & Fifoot, Law of Contract 11th Australian Edition Category: Principal judgment Parties: Prowl Pty Ltd (Plaintiff) DL Brookvale Pty Ltd (First Defendant) Raymond Touma (Second Defendant) Clint Willoughby (Third Defendant) Representation: Counsel: T N Faulkner SC and J Williams (Plaintiff) S Golledge (First and Second Defendants) M R Elliott SC (Third Defendant)