Supreme Court - Trial Division

Gekko Developments Pty Ltd v Centa Company Pty Ltd (No 3) [2015] QSC 087 (12/7936) Philip McMurdo J 16 April 2015

Full-text: QSC15-087.pdf


CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES – FORMATION OF CONTRACTUAL RELATIONS – where parties dispute the content and existence of a legal relationship allegedly arising from dealings between the parties – where the defendant had previously granted the plaintiff an option to purchase property belonging to the defendant – where the plaintiff claimed the parties agreed, in consideration of the plaintiff giving up its claim to a contractual entitlement to the property, that the defendant would pay to the plaintiff $3 million – whether the defendant made an agreement to make a conditional or unconditional payment to the plaintiff – where the defendant denies any conversation to that effect and existence of any contract

CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES – CONSIDERATION – WHAT AMOUNTS TO CONSIDERATION – whether there was an agreement that the defendant would pay the plaintiff $3 million in consideration for giving up its contractual entitlement to the defendant’s property – where the plaintiff’s case was that there would have been consideration by a forbearance to sue – unnecessary to consider whether there was good consideration – it would be sufficient consideration for the agreement upon which it sues if the plaintiff gave up what it genuinely believed to be a legal entitlement – not clear that the plaintiff genuinely believed it had a legal entitlement to the property

EVIDENCE – WITNESSES – where the credibility of witnesses was questionable – where the conclusion resulted not from a favourable impression of the defendant’s witnesses, but from an assessment of the relative probabilities of the respective cases from uncontroversial facts