Harris v Sydney Glass and Tile Co [1904] HCA 47

Harris v Sydney Glass and Tile Co [1904] HCA 47

A covenant in a lease requiring the lessee to pay as rent a sum equal to a proportion of the landlord’s land tax is void as it seeks to alter the statutory incidence of taxation, contrary to the Land and Income Tax Assessment Act 1895, sec. 63. Additionally, a plea alleging agreement, settlement, and payment of rent balance prior to lease execution is good as a defence of payment, and letters evidencing such agreement are admissible, justifying a new trial for improper exclusion of evidence.

Parties
Appellant: Harris; Respondents: Sydney Glass and Tile Co.
Jurisdiction
Australia
Judgment Date
23 December 1904
Procedural Posture
Appeal / On Appeal From the Supreme Court of New South Wales
Outcome
Appeal dismissed with costs.
Legal Topics
Covenant to Pay Rent, Effect of Statutory Prohibition on Contract, Validity of Agreements Altering Tax Incidence, Admissibility of Prior Agreements in Evidence
Contract Law Land Law Taxation Law Covenant to Pay Rent Effect of Statutory Prohibition on Contract Validity of Agreements Altering Tax Incidence Admissibility of Prior Agreements in Evidence

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Parties

Harris

Appellant

Sydney Glass and Tile Co.

Respondents

Procedural Posture

Appeal / On Appeal From the Supreme Court of New South Wales

Legal Issues

  1. 1 Whether a covenant to pay as rent an amount equal to one-third of the land tax was void under statutory provisions.
  2. 2 Whether prior collateral agreements allowing rent deduction are admissible in evidence.
  3. 3 Whether letters prior to execution of the lease were admissible in support of a plea of payment or satisfaction.

Ratio Decidendi

A covenant in a lease requiring the lessee to pay as rent a sum equal to a proportion of the landlord’s land tax is void as it seeks to alter the statutory incidence of taxation, contrary to the Land and Income Tax Assessment Act 1895, sec. 63. Additionally, a plea alleging agreement, settlement, and payment of rent balance prior to lease execution is good as a defence of payment, and letters evidencing such agreement are admissible, justifying a new trial for improper exclusion of evidence.

Court Disposition

Appeal dismissed with costs.

Orders

  • Order for a new trial as to £75 affirmed.
  • Judgment for defendants as to £19 15s 2d affirmed.