Tradebanc International Pty Ltd v Balsdon, Robert Ian & Anor [1996] FCA 505

Tradebanc International Pty Ltd v Balsdon, Robert Ian & Anor [1996] FCA 505

The first respondent orally agreed to write a computer programme for the applicant and was paid $25,000, but the programme supplied was fundamentally deficient and so substantially useless that it had to be completely replaced. The applicant elected to treat the contract as discharged for breach, and because there was a total failure of consideration it was entitled on restitutionary principles to recover the $25,000 from the first respondent, with interest and costs. The respondents had adequate notice of the hearing and had ignored the proceedings, so it was appropriate to proceed ex parte.

Jurisdiction
Australia
Judgment Date
25 June 1996
Procedural Posture
Federal Court Proceeding Concerning Restitution for Breach of Contract, With Copyright Infringement Issues Originally Raised / Ex Parte Hearing; Reasons for Judgment and Orders
Outcome
Judgment for the applicant against the first respondent for $25,000, interest and costs; Order 62 rule 36A not to apply.
Legal Topics
['agreement to Write a Computer Programme' 'deficient and Inadequate Software' 'total Failure of Consideration' 'ex Parte Application' 'notice of Hearing' 'costs Under Order 62 Rule 36 A' 'interest Under S51 a of the Federal Court of Australia Act 1976' 'copyright Infringement in Software']

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Procedural Posture

Federal Court Proceeding Concerning Restitution for Breach of Contract, With Copyright Infringement Issues Originally Raised / Ex Parte Hearing; Reasons for Judgment and Orders

  1. 1 ['Whether it was appropriate to proceed ex parte when the respondents did not appear.' 'Whether the first respondent breached the oral agreement to write a computer programme by supplying software that was deficient and of no substantial use.' 'Whether the applicant was entitled to recover the $25,000 paid on the basis of total failure of consideration.' 'Whether Order 62 rule 36A of the Federal Court Rules should apply to costs.']

Ratio Decidendi

The first respondent orally agreed to write a computer programme for the applicant and was paid $25,000, but the programme supplied was fundamentally deficient and so substantially useless that it had to be completely replaced. The applicant elected to treat the contract as discharged for breach, and because there was a total failure of consideration it was entitled on restitutionary principles to recover the $25,000 from the first respondent, with interest and costs. The respondents had adequate notice of the hearing and had ignored the proceedings, so it was appropriate to proceed ex parte.

Court Disposition

Judgment for the applicant against the first respondent for $25,000, interest and costs; Order 62 rule 36A not to apply.

Orders

  • ['The first Respondent pay the Applicant the sum of $25,000 together with interest under s51A of the Federal Court of Australia Act 1976.' 'Order 62 rule 36A of the Federal Court Rules shall not apply.' 'The first Respondent pay the costs of the Applicant.']