Waltons Stores (Interstate) Ltd v Maher - Law Assignment Help

Assignment Task

Waltons Stores (Interstate) Ltd (the appellant) negotiated for some months with Mr and Mrs Maher (the respondents) for the granting of a lease over property owned by the respondents. It was envisaged that the respondents would erect a building on the land, and this would entail demolition of an existing building. On 7 November 1983, the respondents' solicitors informed the appellant's solicitors of the need to "conclude the agreement within the next day or two" to enable completion of the building according to the times envisaged. Thereupon the appellant's solicitors wrote to the respondents' solicitors, enclosing the documents for the lease and stating that instructions had not at that time been obtained as to certain amendments to an earlier draft lease but that the respondents' solicitors would be informed "tomorrow if any amendments were not agreed to". The letter also requested a schedule of finishes to be annexed to the executed documents prior to exchange. 

Four days later, the documents, executed by the respondents and with a schedule of finishes annexed, were returned to the appellant's solicitors for execution and exchange. The documents were never executed by the appellant and were returned to the respondents' solicitors some months later with a letter stating the appellant's intention not to proceed. By this stage the demolition work had been finished and the new building was 40 per cent complete. After the appellant refused to proceed with the transaction the respondents commenced proceedings in the Supreme Court of New South Wales seeking a declaration that a binding agreement existed and specific performance of the lease, or alternatively damages. Kearney J gave judgment in favour of the respondents and damages in lieu of specific performance. An appeal to the Court of Appeal was dismissed. Held, per curiam: The appeal would be dismissed.

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