Bowman v Durham Holdings Pty Ltd [1973] HCA 55

Bowman v Durham Holdings Pty Ltd [1973] HCA 55

A notice of exercise posted in compliance with clause 19(a) of the deed is deemed delivered in the ordinary course of post, thus rendering the exercise of the option valid within time. Payment need not be simultaneous with exercise unless expressly provided; retention of payment and subsequent conduct evinced offer and acceptance or agreement to extend option rights regardless of strict compliance with formal extension procedures.

Jurisdiction
Australia
Procedural Posture
Appeal / Final Judgment
Outcome
appeal dismissed
Legal Topics
['exercise of Options' 'postal Rules for Notice' 'extension of Option Periods' 'waiver' 'offer and Acceptance']

Case Brief

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Procedural Posture

Appeal / Final Judgment

  1. 1 ['Whether notice of exercise of option was validly given under the deed' 'Whether exercise of the option required simultaneous payment' 'Whether the option was validly extended for a further twelve months' 'Effect of conduct and retention of payments vis-à-vis option extension']

Ratio Decidendi

A notice of exercise posted in compliance with clause 19(a) of the deed is deemed delivered in the ordinary course of post, thus rendering the exercise of the option valid within time. Payment need not be simultaneous with exercise unless expressly provided; retention of payment and subsequent conduct evinced offer and acceptance or agreement to extend option rights regardless of strict compliance with formal extension procedures.

Court Disposition

appeal dismissed

Orders

  • ['Appeal dismissed with costs.']