by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
REIQ Journal : September 2008
20 GST in Moobi v Les Gunn Properties  NSWSC 719 By Paul Hopkins, Senior Partner, Carter Newell Lawyers In the recent decision of Moobi v Les Gunn Properties  NSWSC 719, the Supreme Court of New South Wales (NSWSC) ordered that a contract for the sale of land be rectified by adding GST to the purchase price. Facts On 26 October 2007, Moobi Pty Ltd (the seller) entered into a contract for the sale of land known as the Kurrajong Estate, which had been approved for subdivision into 94 residential lots, to Les Gunn Properties Pty Ltd (the buyer). The contract specified a purchase price of $2.05 million. The seller claimed that the agreement was for a purchase price of $2.05 million plus GST, however, the buyer claimed that the agreement was for a purchase price of $2.05 million inclusive of GST. The seller sought rectification of the contract from the NSWSC for common or alternatively unilateral mistake. REIQ Journal September 2008 The seller engaged Pat Gleeson Real Estate Pty Ltd as sales agent. The agent understood his instructions to be that the lots were available for sale at $100,000 each inclusive of GST; however, the seller claimed that it instructed the agent to sell the lots for $100,000 plus GST. The buyer made an offer to purchase three lots for $100,000 each inclusive of GST. Only once the agent informed the seller of the offer did the seller realise there had been a misunderstanding in relation to the purchase price. The seller subsequently advised the buyer that he was prepared to sell the lots for $100,000 inclusive of GST. However, the buyer then became interested in purchasing the entire estate and wrote to the agent offering to purchase the estate for $1.95 million. The agent questioned the buyer as to whether the offer was “plus GST” and was told that it was. The seller rejected the offer. The buyer subsequently increased his offer to $2.05 million. The agent sent a facsimile to the seller advising it of the further offer of $2.05 million plus GST. The seller wrote to the agent advising him that it would accept the offer of $2.05 million plus GST and said that the margin scheme would apply.