Moobi v Les Gunn Properties [2008] NSWSC 719

Moobi v Les Gunn Properties [2008] NSWSC 719

Rectification for common mistake was refused as there was no proven common subjective intention between the parties at the time of contract. Rectification was granted for unilateral mistake because the defendant, aware of the plaintiff's mistake as to price and GST, deliberately concealed this mistake, amounting to sharp practice and unconscionable conduct warranting equitable intervention.

Parties
Plaintiff: Moobi Pty Ltd; Defendant: Les Gunn Properties Pty Ltd
Jurisdiction
Australia
Judgment Date
16 July 2008
Procedural Posture
Principal Judgment / First Instance
Outcome
Rectification granted for unilateral mistake
Legal Topics
Rectification, Mistake—common and Unilateral, Sale of Land, GST Liability
Contract Law Equity Rectification Mistake—common and Unilateral Sale of Land GST Liability

Case Brief

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Parties

Moobi Pty Ltd

Plaintiff

Les Gunn Properties Pty Ltd

Defendant

Procedural Posture

Principal Judgment / First Instance

Legal Issues

  1. 1 Whether the contract should be rectified to state the purchase price as $2,255,000 (being $2,050,000 plus GST)
  2. 2 Whether there was a common mistake as to GST treatment in the contract
  3. 3 Whether there was a unilateral mistake known to the purchaser and concealed with intent

Ratio Decidendi

Rectification for common mistake was refused as there was no proven common subjective intention between the parties at the time of contract. Rectification was granted for unilateral mistake because the defendant, aware of the plaintiff's mistake as to price and GST, deliberately concealed this mistake, amounting to sharp practice and unconscionable conduct warranting equitable intervention.

Court Disposition

Rectification granted for unilateral mistake

Orders

  • The contract for sale of land dated 26 October 2007 between Moobi Pty Ltd and Les Gunn Properties Pty Ltd be rectified by substituting $2,255,000 for the stated purchase price of $2,050,000.
  • The defendant is to pay the plaintiff's costs.