Locnere Pty Ltd & Anor v Jakk's Bagel & Bread Co Pty Ltd [2003] NSWSC 1123

Locnere Pty Ltd & Anor v Jakk's Bagel & Bread Co Pty Ltd [2003] NSWSC 1123

The Plaintiffs failed to establish a binding and enforceable contract. The 19 June 2003 note showed only an agreement in principle subject to entry into a mutually agreeable Deed, with proceedings kept alive. The later exchange concerning amendments to the draft Deed did not evidence an intention to be bound by...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
21 November 2003
Procedural Posture
Summons Seeking a Declaration of a Binding Settlement Agreement and Specific Performance Directing Execution of a Deed of Release / Hearing and Determination of the Plaintiffs' Summons
Outcome
Summons dismissed; no order as to costs.
Legal Topics
['settlement Agreement' 'compromise of Proceedings' 'intention to Create Legal Relations' 'execution of Deed' 'specific Performance' 'costs Discretion']
['contract' 'equity' 'costs'] ['settlement Agreement' 'compromise of Proceedings' 'intention to Create Legal Relations' 'execution of Deed' 'specific Performance' 'costs Discretion']

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Procedural Posture

Summons Seeking a Declaration of a Binding Settlement Agreement and Specific Performance Directing Execution of a Deed of Release / Hearing and Determination of the Plaintiffs' Summons

Legal Issues

  1. 1 ['Whether an immediately binding compromise was made on 19 June 2003 despite the contemplated entry into a mutually agreeable Deed.' "Whether the Defendant's proposed amendments to the draft Deed and the Plaintiffs' acceptance by email on 29 August 2003 created a binding and enforceable agreement." 'Whether the Defendant should receive its costs despite successfully resisting the Summons.']

Ratio Decidendi

The Plaintiffs failed to establish a binding and enforceable contract. The 19 June 2003 note showed only an agreement in principle subject to entry into a mutually agreeable Deed, with proceedings kept alive. The later exchange concerning amendments to the draft Deed did not evidence an intention to be bound by email rather than by formal execution and exchange of counterparts of the Deed. Specific performance and declaratory relief were therefore refused, but the Defendant's unmeritorious conduct justified making no order as to costs.

Court Disposition

Summons dismissed; no order as to costs.

Orders

  • ["The Plaintiffs' Summons is dismissed." 'No order as to costs.']