''Waltons Stores (Interstate) Ltd v Maher'',. is a leading case in

Australian contract law The law of contract in Australia is similar to other Anglo-American common law jurisdictions. Contract law in Australia differs from other jurisdictions because of statute law, and divergent development of common law by the High Court, particu ...

. The Australian High Court decided that

estoppel Estoppel is a judicial device in common law legal systems whereby a court may prevent or "estop" a person from making assertions or from going back on his or her word; the person being sanctioned is "estopped". Estoppel may prevent someone from ...

, in certain circumstances could be a cause of action.

Facts

Maher owned some property with buildings on it in

Nowra Nowra is a city in the South Coast region of New South Wales, Australia. It is located south-southwest of the state capital of Sydney (about as the crow flies). As of the 2021 census, Nowra has an estimated population of 22,584. Situated in th ...

. He was negotiating with a department store company called Waltons Stores (at the time controlled by the

Bond Corporation Alan Bond (22 April 1938 – 5 June 2015) was an English-born Australian businessman noted for his high-profile and often corrupt business dealings. These included his central role in the WA Inc scandals of the 1980s, and what was at the time ...

) for a lease of the land. They wanted an existing building to be demolished and a new one erected. In reliance on representations made before a contract was completed, Maher demolished the building and started to erect a new one. But the contract never came to completion because Waltons Stores did not sign the lease as Maher had yelled at them and become hostile towards them. Waltons told their solicitors to slow the deal while they did further investigations as to whether the transaction would be good business, but allowed Maher to remain under the impression that the deal would be completed.

Judgment

The High Court held that to avoid detriment through Waltons' unconscionable behaviour, Waltons was estopped from denying the contract. Whilst the mere exercise of legal right not to exchange contracts was not unconscionable, there were two additional elements which made Waltons' conduct unconscionable: a) element of urgency, b) Maher executed and forwarded on 11/11 and assumed execution by Walton was a formality. The award (though very similar to an expectation interest, as if it were a contract that was enforced) was only meant to cover reliance. Because Maher had acted to his detriment, in reliance on the encouragement of Walton Stores, which had acted unconscionably, equity would intervene.

Brennan J William Joseph "Bill" Brennan Jr. (April 25, 1906 – July 24, 1997) was an American lawyer and jurist who served as an Associate Justice of the Supreme Court of the United States from 1956 to 1990. He was the seventh-longest serving justice ...

said the following Brennan J, Deane J and Gaudron J gave concurring judgments.

References

{{Reflist Contract case law High Court of Australia cases 1988 in case law 1988 in Australian law

Facts

Judgment

See also

References