Ashton v Monteleone [2010] NSWSC 258

As there was clear and common intention of the parties, including purchaser, that the purchase price was plus GST, the contract for sale was rectified by addition of '+ GST' to the price.

Jurisdiction: Australia
Judgment Date: 08 April 2010
Procedural Posture: Equity (principal Judgment) / Judgment and Orders Following Trial
Outcome: Contract for sale rectified by addition of '+ GST' to price; cross-claim dismissed; vendor ordered to apply for private indirect tax ruling.
Legal Topics: ['rectification' 'goods and Services Tax (gst)' 'interpretation of Contract' 'vendor Purchaser Obligations']

['equity' 'contract Law'] ['rectification' 'goods and Services Tax (gst)' 'interpretation of Contract' 'vendor Purchaser Obligations']

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Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1

Procedural Posture

Equity (principal Judgment) / Judgment and Orders Following Trial

Legal Issues

1 ["Whether the contract for sale should be rectified by addition of '+ GST' to the price" 'Whether there was a common intention of parties that price would be plus GST' 'Calculation of GST where sale partly taxable supply and partly input-taxed' "Vendor's obligation to pay purchaser 1/11th of price on completion"]

Ratio Decidendi

As there was clear and common intention of the parties, including purchaser, that the purchase price was plus GST, the contract for sale was rectified by addition of '+ GST' to the price.

Court Disposition

Contract for sale rectified by addition of '+ GST' to price; cross-claim dismissed; vendor ordered to apply for private indirect tax ruling.

Orders

["Contract for sale rectified by substituting for the price '$1,060,000 + GST'." 'Ms Ashton to apply to the Commissioner of Taxation within 14 days for a private indirect tax ruling as to taxable supply and price.' 'Amended statement of cross-claim dismissed.' 'Further consideration of the statement of claim stood...