John R Keith Pty Limited v Multiplex Constructions (NSW) Pty Limited & Anor [2002] NSWSC 43

John R Keith Pty Limited v Multiplex Constructions (NSW) Pty Limited & Anor [2002] NSWSC 43

A binding and enforceable agreement was formed between Multiplex and JRK about 18 July 1997, based on Multiplex's Invitation to Tender and related documents and JRK's 18 July 1997 letter (as amended), with the objective communications and conduct evidencing an intention to make a concluded bargain, albeit expecting to formalise further details in a later contract. The contract included essential terms, notably an arbitration clause, and was sufficiently certain as to scope and price. The parties were immediately bound by the agreed terms, satisfying the 'fourth class' in Masters v Cameron.

Parties
Plaintiff: John R Keith Pty Limited; First Defendant: Multiplex Constructions (NSW) Pty Limited; Second Defendant: Multiplex Constructions Pty Limited
Jurisdiction
Australia
Judgment Date
14 February 2002
Procedural Posture
Contract Dispute / Final Judgment on Separate Questions, Prior to Final Orders
Outcome
Binding and enforceable contract found; parties to submit short minutes of order. Proceedings to be stayed pending arbitration if arbitration clause applies.
Legal Topics
Contract Formation, Arbitration Clauses, Estoppel, Tender Processes, Masters V Cameron Classifications
Contract Law Arbitration Law Contract Formation Arbitration Clauses Estoppel Tender Processes Masters V Cameron Classifications

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 6 Authorities cited 27 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

John R Keith Pty Limited

Plaintiff

Multiplex Constructions (NSW) Pty Limited

First Defendant

Multiplex Constructions Pty Limited

Second Defendant

Procedural Posture

Contract Dispute / Final Judgment on Separate Questions, Prior to Final Orders

Legal Issues

  1. 1 Whether a binding and enforceable subcontract was formed between the plaintiff and second defendant
  2. 2 Whether alternative proposals constituted abandonment of original subcontract terms
  3. 3 Whether an arbitration clause required the proceedings to be stayed pursuant to s53(1) Commercial Arbitration Act 1984 (NSW)

Ratio Decidendi

A binding and enforceable agreement was formed between Multiplex and JRK about 18 July 1997, based on Multiplex's Invitation to Tender and related documents and JRK's 18 July 1997 letter (as amended), with the objective communications and conduct evidencing an intention to make a concluded bargain, albeit expecting to formalise further details in a later contract. The contract included essential terms, notably an arbitration clause, and was sufficiently certain as to scope and price. The parties were immediately bound by the agreed terms, satisfying the 'fourth class' in Masters v Cameron.

Court Disposition

Binding and enforceable contract found; parties to submit short minutes of order. Proceedings to be stayed pending arbitration if arbitration clause applies.

Orders

  • Short minutes to be brought in.
  • If contract includes arbitration clause, proceedings stayed pursuant to s53(1) Commercial Arbitration Act 1984 (NSW).