Blomley v Ryan

High Court of Australia [1956] HCA 81; (1956) 99 CLR 362 (28 March 1956)

Facts

Blomley entered into a contract to purchase a farm (Worrah) from Ryan. Ryan was 78 and was suffering the effects of prolonged and excessive consumption of alcohol. When Ryan sought to withdraw from the sale Blomley sought specific performance.

For some days prior to and upon the day when Ryan signed this agreement his condition was such, as the result of over-indulgence in alcoholic liquor, that he did not possess the requisite contractual capacity.

Alternatively, it was said that even if he was not incapable in this sense his mind was, to the knowledge of the plaintiff, so affected by drink as to place him at a grave disadvantage in transacting the negotiations and sale that, taken with the other features of the case, the remedy of specific performance should be withheld.

The other features relied upon are to be found in the allegations that the defendant quite obviously was an old man of failing intellect, that the sale was at a very substantial undervalue, that the terms of the agreement were unfair, that the transaction was concluded with undue haste and without adequate advice being available to the defendant and that the purchaser's agent himself had contributed to the defendant's debilitated condition.

Question and explain:

Refer to the facts of Blomley v Ryan above.

Who is the plaintiff?

Who is the defendant?

What are the issues in this case?

What are the two elements which must be present in order to escape from a contract on the grounds of intoxication?