VICTORIA PARK GOLF CLUB INC V BRISBANE CITY COUNCIL [2001] QSC 225
Supreme Court of Queensland – 29 June 2001
FACTS
The Council was the owner (on trust) of land used for a golf course. The golf club operated a clubhouse on the land and its members had entitlements to use the golf course. During the early 1990’s the Council and the members of the golf club wanted to formalise their legal relationship. In April 1996 the Council adopted a recommendation that negotiations be conducted withthe golf club for a lease of the land from the Council to the club and a separate agreement that the members of the club have some exclusive rights to use the golf course.
During 1999 a Mr. S acted on behalf of the Council in negotiations for the relevant contracts. The Council sent a documenten titled “Proposed Lease and Block Playing Times” to the club in September 1999 and a member of the club signed this document to state that the proposal would be put to members of the club. Other matters delayed a final decision about the future of the golf course but eventually in 2000 the Council decided to withdraw the document of September 1999.
The golf club sued for specific performance of agreements allegedly outlined in the document of September 1999.
ISSUES
Did Mr. S have authority to bind the Council and make a contract with the golf club?
The golf club argued that Mr. S had actual authority to bind the Council and if he did not have actual authority he had ostensible or apparent authority to bind the Council.
FINDING
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