Mode E Moda Pty Ltd v Physico Clothing Company Pty Ltd [2006] NSWCA 251

Mode E Moda Pty Ltd v Physico Clothing Company Pty Ltd [2006] NSWCA 251

Physico's communications, the credit application and the subsequent deliveries showed an unequivocal offer by Physico, as principal, to supply the goods Materna Moda had ordered from Urban, on Physico's terms. Materna Moda accepted that offer by taking delivery of the goods. Its subjective belief that Physico was only a conduit for Urban did not prevent contract formation because intention and acceptance are assessed objectively.

Jurisdiction
Australia
Judgment Date
29 August 2006
Procedural Posture
Appeal in Contract Proceedings for the Price of Goods, With an Alternative Unjust Enrichment Claim / Appeal From District Court Decision of Phegan DCJ
Outcome
Appeal dismissed with costs.
Legal Topics
['formation of Contract' 'acceptance by Conduct' 'intention to Create Legal Relations' 'objective Test' 'delivery of Goods']
['contract' 'unjust Enrichment'] ['formation of Contract' 'acceptance by Conduct' 'intention to Create Legal Relations' 'objective Test' 'delivery of Goods']

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Procedural Posture

Appeal in Contract Proceedings for the Price of Goods, With an Alternative Unjust Enrichment Claim / Appeal From District Court Decision of Phegan DCJ

Legal Issues

  1. 1 ['Whether Materna Moda entered into a contract with Physico for the supply of Benetton maternity wear.' "Whether acceptance of delivery of the goods amounted to acceptance of Physico's offer." "Whether the intention to create a legally binding contract was to be assessed objectively or by reference to Materna Moda's subjective belief."]

Ratio Decidendi

Physico's communications, the credit application and the subsequent deliveries showed an unequivocal offer by Physico, as principal, to supply the goods Materna Moda had ordered from Urban, on Physico's terms. Materna Moda accepted that offer by taking delivery of the goods. Its subjective belief that Physico was only a conduit for Urban did not prevent contract formation because intention and acceptance are assessed objectively.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.' 'Ordered pursuant to Rule 41.3 of the Uniform Civil Procedure Rules that money paid into Court in this matter be paid out to the respondent after 7 days.']