Metroland Funds Management Ltd v Skyrise Consultants Pty Ltd [2011] NSWSC 343

Metroland Funds Management Ltd v Skyrise Consultants Pty Ltd [2011] NSWSC 343

The letter dated 26 March 2009 was the contract between the parties. It expressly provided that Skyrise was not to commence performing services unless and until a written Commencement Notice was given, and that the deposit was repayable in full if 12 months elapsed without such notice. No Commencement Notice was given. The alleged oral conversation before signing could not constitute a variation because a contract cannot be varied before it comes into existence and, in any event, the alleged oral terms contradicted the written agreement. Skyrise was therefore liable to repay the deposit with interest, and Mr Pang was liable as guarantor.

Jurisdiction
Australia
Judgment Date
19 April 2011
Procedural Posture
Claim for Return of Deposit Under a Contract / Principal Judgment
Outcome
Judgment for the plaintiffs against both defendants for $332,714; defendants to pay the plaintiffs' costs.
Legal Topics
['variation of Contract' 'oral Variation' 'written Agreement' 'deposit Repayment' 'guarantee' 'parol Evidence']
['contract Law'] ['variation of Contract' 'oral Variation' 'written Agreement' 'deposit Repayment' 'guarantee' 'parol Evidence']

Case Brief

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Procedural Posture

Claim for Return of Deposit Under a Contract / Principal Judgment

Legal Issues

  1. 1 ['Whether a written agreement between the plaintiffs and the defendants was varied orally before the written agreement was entered into.' 'Whether it is possible to vary a contract before it comes into existence.' 'Whether an alleged oral agreement contrary to the terms of the subsequent written agreement could stand with the written agreement.' 'Whether the deposit was repayable where no Commencement Notice was given within 12 months.' 'Whether Vincent Pang was liable as guarantor if Skyrise Consultants Pty Ltd was liable to repay the deposit.']

Ratio Decidendi

The letter dated 26 March 2009 was the contract between the parties. It expressly provided that Skyrise was not to commence performing services unless and until a written Commencement Notice was given, and that the deposit was repayable in full if 12 months elapsed without such notice. No Commencement Notice was given. The alleged oral conversation before signing could not constitute a variation because a contract cannot be varied before it comes into existence and, in any event, the alleged oral terms contradicted the written agreement. Skyrise was therefore liable to repay the deposit with interest, and Mr Pang was liable as guarantor.

Court Disposition

Judgment for the plaintiffs against both defendants for $332,714; defendants to pay the plaintiffs' costs.

Orders

  • ['Judgment for the plaintiffs against both defendants for $332,714.' "Defendants to pay the plaintiffs' costs."]