Shortall v White [2007] NSWCA 372

Shortall v White [2007] NSWCA 372

The appeal failed because the pleadings and conduct of the trial permitted the breach of contract claim; viewed objectively, the letter, the parties' broken-down defacto relationship, the respondent's request for security, and the appellant's demand for and receipt of a $20,000 cheque demonstrated an intention to create legal relations supported by consideration. The letter also created a trust, with intention judged objectively in this bilateral transaction for value, and the appellant's inability to transfer escrowed shares did not excuse breach of his unqualified promise to transfer 222,000 Unitract shares on demand after 1 August 2003.

Jurisdiction
Australia
Judgment Date
19 December 2007
Procedural Posture
Appeal Concerning Alleged Contract and Trust Arising From Agreement Between Former Defacto Partners / Court of Appeal Appeal From Supreme Court Equity Division Decision of Campbell J
Outcome
Appeal dismissed with costs.
Legal Topics
['intention to Create Legal Relations' 'intention to Create Trust' 'consideration' 'breach of Contract' 'breach of Trust' 'objective Test for Intention']
['defacto Relationships' 'contract Law' 'trusts' 'equity'] ['intention to Create Legal Relations' 'intention to Create Trust' 'consideration' 'breach of Contract' 'breach of Trust' 'objective Test for Intention']

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Procedural Posture

Appeal Concerning Alleged Contract and Trust Arising From Agreement Between Former Defacto Partners / Court of Appeal Appeal From Supreme Court Equity Division Decision of Campbell J

Legal Issues

  1. 1 ["Whether the respondent's claim for damages for breach of contract was covered by the pleadings." 'Whether the letter and surrounding circumstances established an intention to enter into legal relationships.' "Whether there was consideration for the appellant's promise." 'Whether the letter created a trust and whether intention to create the trust was to be judged subjectively or objectively.' "Whether the appellant's inability to transfer escrowed shares excused breach of the contractual promise to transfer shares on demand after 1 August 2003."]

Ratio Decidendi

The appeal failed because the pleadings and conduct of the trial permitted the breach of contract claim; viewed objectively, the letter, the parties' broken-down defacto relationship, the respondent's request for security, and the appellant's demand for and receipt of a $20,000 cheque demonstrated an intention to create legal relations supported by consideration. The letter also created a trust, with intention judged objectively in this bilateral transaction for value, and the appellant's inability to transfer escrowed shares did not excuse breach of his unqualified promise to transfer 222,000 Unitract shares on demand after 1 August 2003.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']