Stanwell Park Hotel Co Ltd v Leslie [1952] HCA 20

Stanwell Park Hotel Co Ltd v Leslie [1952] HCA 20

Contractual adjustment clauses which vary the monetary incidence of liability according to price indices are legally effective, and where the language and structure of the contract so admit, apply to all payments made under the contract, including optional payments and sums required to be paid upon default; such clauses are not invalid for contravening legal tender rules, as they concern only calculation of liability, not the form of payment.

Parties
Appellant; Plaintiff; Vendor: Stanwell Park Hotel Company Limited; Respondent; Defendant; Purchaser: Richard Leslie
Jurisdiction
Australia
Procedural Posture
Appeal / High Court Appeal From the Supreme Court of New South Wales (full Court)
Outcome
Appeal allowed
Legal Topics
Vendor and Purchaser, Sale of Land, Contractual Payment Adjustment, Currency Fluctuation Clauses, Interpretation of Contracts
Contract Law Property Law Vendor and Purchaser Sale of Land Contractual Payment Adjustment Currency Fluctuation Clauses Interpretation of Contracts

Case Brief

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Parties

Stanwell Park Hotel Company Limited

Appellant; Plaintiff; Vendor

Richard Leslie

Respondent; Defendant; Purchaser

Procedural Posture

Appeal / High Court Appeal From the Supreme Court of New South Wales (full Court)

Legal Issues

  1. 1 Whether the 'rise and fall' clause in a contract for payment by instalments on a land sale, which varies payments by reference to a retail price index, applies to (a) optional payments and (b) payment of the balance called up upon default.
  2. 2 Whether such a clause is invalid for contravening legal tender principles.
  3. 3 Whether the vendor had waived rights under the clause by prior conduct.

Ratio Decidendi

Contractual adjustment clauses which vary the monetary incidence of liability according to price indices are legally effective, and where the language and structure of the contract so admit, apply to all payments made under the contract, including optional payments and sums required to be paid upon default; such clauses are not invalid for contravening legal tender rules, as they concern only calculation of liability, not the form of payment.

Court Disposition

Appeal allowed

Orders

  • Order of Supreme Court discharged
  • Both parts of the question submitted by cl. 6 of the special case for the determination of the Supreme Court be answered in the affirmative