Svanosio v McNamara [1956] HCA 55

Svanosio v McNamara [1956] HCA 55

The contract and conveyance were not void for common mistake. Although the parties believed the hotel stood wholly on the land sold and part of it stood on unalienated Crown land, the purchaser completed without survey or objection under conditions that provided for requisitions and misdescription. After completion and effective conveyance and licence transfer, equity would not undo a sale of land absent fraud or total failure of consideration, and neither existed because the appellant received the conveyed land, possession of the hotel, and transfer of the licence and goodwill, to which most of the price was apportioned.

Jurisdiction
Australia
Procedural Posture
Appeal in an Action Seeking Declarations, Rescission and Repayment After a Completed Sale of Land, Hotel Licence and Goodwill / Appeal to the High Court of Australia From a Judgment of the Supreme Court of Victoria (martin J.) Dismissing the Action
Outcome
Appeal dismissed with costs.
Legal Topics
['common Mistake' 'sale of Land' 'rescission After Conveyance' 'defect of Title' 'innocent Misrepresentation' 'total Failure of Consideration' 'merger of Contract in Conveyance' 'requisitions on Title' 'licensed Hotel Premises']
['contract Law' 'property Law' 'equity'] ['common Mistake' 'sale of Land' 'rescission After Conveyance' 'defect of Title' 'innocent Misrepresentation' 'total Failure of Consideration' 'merger of Contract in Conveyance' 'requisitions on Title' 'licensed Hotel Premises']

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Procedural Posture

Appeal in an Action Seeking Declarations, Rescission and Repayment After a Completed Sale of Land, Hotel Licence and Goodwill / Appeal to the High Court of Australia From a Judgment of the Supreme Court of Victoria (martin J.) Dismissing the Action

Legal Issues

  1. 1 ["Whether the contract and conveyance were void because all parties mistakenly believed that the Bull's Head Hotel stood wholly on the land sold." 'Whether, after completion and conveyance, equity should set aside the transaction and order repayment because part of the hotel stood on unalienated Crown land.' "Whether the purchaser's failure to investigate title by survey or to object before completion precluded relief." 'Whether the defect amounted to fraud, total failure of consideration, or practically total failure of consideration.']

Ratio Decidendi

The contract and conveyance were not void for common mistake. Although the parties believed the hotel stood wholly on the land sold and part of it stood on unalienated Crown land, the purchaser completed without survey or objection under conditions that provided for requisitions and misdescription. After completion and effective conveyance and licence transfer, equity would not undo a sale of land absent fraud or total failure of consideration, and neither existed because the appellant received the conveyed land, possession of the hotel, and transfer of the licence and goodwill, to which most of the price was apportioned.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']