Paterson v McNaghten [1905] HCA 21

Paterson v McNaghten [1905] HCA 21

A restraint on anticipation in a separation deed does not make the contract irrevocable or prevent the wife from waiving her rights under it or agreeing to its rescission, except regarding instalments already accrued due. The jury found that the wife accepted substituted arrangements as satisfaction for arrears, precluding enforcement of the deed as to all but the first instalment. Equitable defences based on waiver and accord and satisfaction operate to discharge liability for all instalments except the first.

Parties
Appellant: Paterson; Respondent: MeNaghten
Jurisdiction
Australia
Judgment Date
30 June 1905
Procedural Posture
Appeal / On Appeal From the Supreme Court of New South Wales
Outcome
Appeal allowed with costs, decision of Supreme Court reversed, verdict restored for £100 only
Legal Topics
Separation Deed, Restraint on Anticipation, Waiver of Condition Precedent, Equitable Defence, Accord and Satisfaction
Family Law Trusts Contract Law Separation Deed Restraint on Anticipation Waiver of Condition Precedent Equitable Defence Accord and Satisfaction

Case Brief

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Parties

Paterson

Appellant

MeNaghten

Respondent

Procedural Posture

Appeal / On Appeal From the Supreme Court of New South Wales

Legal Issues

  1. 1 Effect of restraint on anticipation clause in a separation deed
  2. 2 Waiver of condition precedent by the wife
  3. 3 Whether an executory contract to which a married woman is party is made irrevocable by a restraint on anticipation clause

Ratio Decidendi

A restraint on anticipation in a separation deed does not make the contract irrevocable or prevent the wife from waiving her rights under it or agreeing to its rescission, except regarding instalments already accrued due. The jury found that the wife accepted substituted arrangements as satisfaction for arrears, precluding enforcement of the deed as to all but the first instalment. Equitable defences based on waiver and accord and satisfaction operate to discharge liability for all instalments except the first.

Court Disposition

Appeal allowed with costs, decision of Supreme Court reversed, verdict restored for £100 only

Orders

  • Order of the Supreme Court appealed from discharged
  • Rule nisi for increased verdict discharged with costs