COOGEE ESPLANADE SURF MOTEL PTY LTD V COMMONWEALTH
(1976) 50 ALR 363
Court of Appeal (New South Wales) – 16 March 1976
Commonwealth government department had agreed in principle to purchase the Coogee Beach Motel for a fixed price. As the relevant officer from the Commonwealth was aware that the Vendor was being pressed by its creditors, he agreed to send a conclusive letter of intent to the Vendor which could be shown to the Vendor’s creditors prior to a formal exchange of contracts.
The letter was sent and stated that the purchase of the motel had been approved and also outlined the Commonwealth’s intention to proceed to purchase the motel and to complete the transaction. After a change of government the Commonwealth decided not to proceed with the purchase of the motel.
Should the Court grant the application by Coogee for specific performance of the agreement for the sale of the motel?