Yango Pastoral Co Pty Ltd v First Chicago Australia Ltd [1978] HCA 42

Yango Pastoral Co Pty Ltd v First Chicago Australia Ltd [1978] HCA 42

Section 8 of the Banking Act 1959 (Cth), on its proper construction, does not expressly or impliedly prohibit or invalidate contracts made by a corporation in the course of carrying on banking business without authority, nor does it prevent a court from enforcing such contracts. The legislative intention is for the penalty imposed to be the sole legal consequence of breach.

Jurisdiction
Australia
Procedural Posture
Civil / Appeal
Outcome
Appeal dismissed
Legal Topics
['illegality of Contract' 'statutory Construction' 'public Policy' 'enforceability of Contracts']
['banking Law' 'contract Law'] ['illegality of Contract' 'statutory Construction' 'public Policy' 'enforceability of Contracts']

Case Brief

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Procedural Posture

Civil / Appeal

Legal Issues

  1. 1 ['Whether section 8 of the Banking Act 1959 (Cth) renders illegal and void a contract entered into by a corporation carrying on banking business without authority;' 'Whether, by reason of section 8 of the Banking Act 1959 (Cth), a court should refuse to enforce such a contract at the suit of the unauthorized party.']

Ratio Decidendi

Section 8 of the Banking Act 1959 (Cth), on its proper construction, does not expressly or impliedly prohibit or invalidate contracts made by a corporation in the course of carrying on banking business without authority, nor does it prevent a court from enforcing such contracts. The legislative intention is for the penalty imposed to be the sole legal consequence of breach.

Court Disposition

Appeal dismissed

Orders

  • ['Appeal dismissed with costs.']