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Cuzeno v Powercell - Doyles Arbitration Lawyers

CUZENO PTY LTD V. POWERCELL PTY LTD [1999] NSWCA 344

Court of Appeal of NSW – 22 September 1999

FACTS

Powercell entered into a contract with Cuzeno for building works on land owned by Cuzeno. Powercell was to be paid by becoming the registered proprietor of 9 of the 18 units to be built on the land. Powercell then entered into contracts with purchasers to sell these units.

The original contract between Powercell and Cuzeno was later amended to provide that Powercell would be paid money instead of owning the 9 units. The trial judge found that Cuzeno also agreed to take responsibility for the existing contracts for the purchase of the units. One purchaser, Grasso, sued Powercell for breach of contract and Powercell claimed damages from Cuzeno.

ISSUES

Was the change to the original building contract an unsuccessful novation and thus unenforceable?

Did the fact that the change to the original contract was not in writing render it unenforceable?

FINDING

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End