BLAKE KITTLE PTY LTD v BAILEY [1991] NSWCA 24

BLAKE KITTLE PTY LTD v BAILEY [1991] NSWCA 24

The estate agent’s officer breached an implied contractual term to exercise reasonable care in advice given to Bailey regarding the desirability of selling with vacant possession; Bailey was entitled to recover as damages only those expenses that would not have been incurred had the contract not been altered on the faulty advice, less costs that would have been incurred in any event.

Parties
Appellant/cross Defendant: Blake Kittle Pty Ltd; Respondent/cross Claimant/defendant: Bailey
Jurisdiction
Australia
Judgment Date
02 October 1991
Procedural Posture
Appeal / Court of Appeal Decision
Outcome
Appeal allowed in part; damages amended.
Legal Topics
Estate Agent's Duty of Care, Implied Contractual Terms, Damages for Breach of Contract, Sale of Land With Vacant Possession, Indemnity
Contract Law Property Law Estate Agent's Duty of Care Implied Contractual Terms Damages for Breach of Contract Sale of Land With Vacant Possession Indemnity

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Parties

Blake Kittle Pty Ltd

Appellant/cross Defendant

Bailey

Respondent/cross Claimant/defendant

Procedural Posture

Appeal / Court of Appeal Decision

Legal Issues

  1. 1 Whether the estate agent breached an implied contractual duty of care when advising to sell with vacant possession
  2. 2 Proper quantification of damages against the estate agent for breach of duty

Ratio Decidendi

The estate agent’s officer breached an implied contractual term to exercise reasonable care in advice given to Bailey regarding the desirability of selling with vacant possession; Bailey was entitled to recover as damages only those expenses that would not have been incurred had the contract not been altered on the faulty advice, less costs that would have been incurred in any event.

Court Disposition

Appeal allowed in part; damages amended.

Orders

  • Order that cross defendant pay cross claimant $6,350 in damages.
  • Order that indemnity for interest and costs against the cross defendant be set aside.