Dalgety & Company Limited v Gray [1919] UKPCHCA 4

Dalgety & Company Limited v Gray [1919] UKPCHCA 4

The alleged oral agreement was unenforceable as it amounted to a contract to create an interest in land, which must be in writing under the Statute of Frauds (Instruments Act 1890 (Vict.), sec. 208); accordingly, the trial Judge was correct in withdrawing the case from the jury, and the suit should have been dismissed.

Parties
Appellant; Defendant: Dalgety & Company Limited; Respondent; Plaintiff: Gray
Jurisdiction
Australia
Judgment Date
13 May 1919
Procedural Posture
Appeal / Appeal From the High Court to the Privy Council
Outcome
appeal allowed
Legal Topics
Agency, Statute of Frauds, Agreements Concerning Interests in Land, Mortgages, Oral Contracts
Contract Law Property Law Agency Statute of Frauds Agreements Concerning Interests in Land Mortgages Oral Contracts

Case Brief

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Parties

Dalgety & Company Limited

Appellant; Defendant

Gray

Respondent; Plaintiff

Procedural Posture

Appeal / Appeal From the High Court to the Privy Council

Legal Issues

  1. 1 Whether an oral agreement to procure a loan secured by mortgage is enforceable under the Statute of Frauds (Instruments Act 1890 (Vict.), sec. 208)
  2. 2 Whether such an agreement creates an interest in land and therefore must be in writing
  3. 3 Whether the agent (defendant) could lawfully lend the balance of funds himself without conflict of interest

Ratio Decidendi

The alleged oral agreement was unenforceable as it amounted to a contract to create an interest in land, which must be in writing under the Statute of Frauds (Instruments Act 1890 (Vict.), sec. 208); accordingly, the trial Judge was correct in withdrawing the case from the jury, and the suit should have been dismissed.

Court Disposition

appeal allowed

Orders

  • Restoration of the judgment of the trial Judge at first instance (for defendants)
  • Defendants to have their costs in all courts and before the Privy Council