Narayan v Narayan [2022] NSWSC 1685

Narayan v Narayan [2022] NSWSC 1685

The Court found that the correspondence between the parties, in particular the offer by Redline Legal on 22 March 2021 and acceptance by Hunt & Hunt on 31 March 2021, evidenced an objectively ascertainable intention to be immediately bound. The settlement agreement was binding from 1 April 2021, notwithstanding that the parties anticipated the terms would subsequently be recorded in a formal deed, which might contain further mutually agreed terms. The conduct following this exchange reinforced, rather than displaced, the conclusion that a binding agreement had been made.

Parties
Plaintiff: Latchmi Narayan; Defendant: Ranu Narayan
Jurisdiction
Australia
Judgment Date
09 December 2022
Procedural Posture
Equity Real Property / Notice of Motion for Declaration of Binding Settlement, Determination at Interlocutory Stage
Outcome
Binding settlement agreement found; declaration in favour of Plaintiff; order for execution of settlement deed by Defendant.
Legal Topics
Formation of Contract, Settlement Agreements, Calderbank Offers, Intention to Create Legal Relations, Enforcement of Compromise Agreements
Contract Law Civil Procedure Equity Real Property Formation of Contract Settlement Agreements Calderbank Offers Intention to Create Legal Relations +1 more

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Parties

Latchmi Narayan

Plaintiff

Ranu Narayan

Defendant

Procedural Posture

Equity Real Property / Notice of Motion for Declaration of Binding Settlement, Determination at Interlocutory Stage

Legal Issues

  1. 1 Whether a binding settlement agreement was formed by acceptance of a Calderbank offer without execution of a formal deed
  2. 2 Whether subsequent conduct affected the conclusion of a binding agreement

Ratio Decidendi

The Court found that the correspondence between the parties, in particular the offer by Redline Legal on 22 March 2021 and acceptance by Hunt & Hunt on 31 March 2021, evidenced an objectively ascertainable intention to be immediately bound. The settlement agreement was binding from 1 April 2021, notwithstanding that the parties anticipated the terms would subsequently be recorded in a formal deed, which might contain further mutually agreed terms. The conduct following this exchange reinforced, rather than displaced, the conclusion that a binding agreement had been made.

Court Disposition

Binding settlement agreement found; declaration in favour of Plaintiff; order for execution of settlement deed by Defendant.

Orders

  • Declaration that a binding and enforceable settlement agreement was made between Plaintiff and Defendant on 1 April 2021.
  • Order that Defendant execute the deed of settlement as negotiated.