''Waltons Stores (Interstate) Ltd v Maher'',
[.] is a leading case in
Australian contract law. 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 b ...
, 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 t ...
. 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.
See also
*''
Combe v Combe''
9512 KB 215
*''
Crabb v Arun DC''
976Ch 176
*''
Williams v Roffey Bros Ltd
is a leading English contract law case. It decided that in varying a contract, a promise to perform a pre-existing contractual obligation will constitute good consideration so long as a benefit is conferred upon the 'promiseor'. This was a depar ...
''
*''
Baird Textile Holdings Ltd v Marks & Spencer plc''
001EWCA Civ 274
*
Promissory estoppel
A promise is a commitment by someone to do or not do something. As a noun ''promise'' means a declaration assuring that one will or will not do something. As a verb it means to commit oneself by a promise to do or give. It can also mean a capacity ...
References
{{Reflist
Contract case law
High Court of Australia cases
1988 in case law
1988 in Australian law