Lindsay-Owen v Associated Dairies Pty Ltd [2000] NSWSC 1095

Lindsay-Owen v Associated Dairies Pty Ltd [2000] NSWSC 1095

The contract was frustrated because the abolition of the milk quota scheme by legislative amendment resulted in the radical alteration of the market and the subject matter of the contract, such that the performance required by the deed became fundamentally different from what was originally contemplated.

Jurisdiction
Australia
Judgment Date
10 November 2000
Procedural Posture
Equity Proceedings / Final Judgment
Outcome
Contract frustrated; defendants substantially successful; costs to defendants.
Legal Topics
['discharge of Contract' 'frustration' 'impossibility of Performance' 'right of Pre Emption']
['contracts' 'equity'] ['discharge of Contract' 'frustration' 'impossibility of Performance' 'right of Pre Emption']

Case Brief

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Procedural Posture

Equity Proceedings / Final Judgment

Legal Issues

  1. 1 ['Whether a contract granting pre-emptive rights to purchase a dairy farm business has been frustrated by legislative abolition of milk quotas.' 'Whether the first defendant is obliged to dispose of the business as a whole or may sell its constituent elements piecemeal.']

Ratio Decidendi

The contract was frustrated because the abolition of the milk quota scheme by legislative amendment resulted in the radical alteration of the market and the subject matter of the contract, such that the performance required by the deed became fundamentally different from what was originally contemplated.

Court Disposition

Contract frustrated; defendants substantially successful; costs to defendants.

Orders

  • ['The agreement in the deed was declared frustrated by the supervening legislative abolition of milk quota.' 'Defendants awarded their costs generally; minutes of order to be brought in.']