Event and Time
Event Description
On 5 March 2024, the Victorian Supreme Court delivered a judgment in a contract dispute between AIL C SUB TC Pty Ltd (the defendant) and Merrindale Properties Pty Ltd (the plaintiff) regarding a sale contract for land at 130–140 Merrindale Drive, Kilsyth. AIL successfully argued for the rescission of the contract due to the plaintiff's failure to provide a bank guarantee by the deadline specified in the contract.
Application and Claims
- Defendant (AIL):
- Sought a declaration that it validly rescinded the contract based on the non-procurement of a bank guarantee by the plaintiff. - Sought indemnity costs and interest associated with the proceedings.
- Plaintiff (Merrindale):
- Contended that it complied with the contract terms for the bank guarantee. - Sought specific performance of the contract, which ultimately failed.
Judicial Decisions
- The court found in favor of the defendant's rescission of the contract.
- The plaintiff was ordered to pay the deposit and interest to the defendant.
- The court refused the defendant's requests for indemnity costs and denied claims for compound interest, awarding simple interest instead.
Dispute Points and Legal Basis
Dispute Points
- Validity of Offers:
- The defendant claimed two offers of compromise, one on 19 December 2022 and another on 27 July 2023, arguing that the first was valid for indemnity costs. - The plaintiff contended the first offer did not comply with the rules and was not open for the requisite 14 days.
- Costs:
- Disagreement over the nature of costs, with the defendant seeking indemnity costs and the plaintiff arguing for standard costs and apportionment.