Reflection 1 Scenario

Students, you are the Judge hearing the dispute and the relevant facts (a) to (j) below are not challenged in the hearing conducted before you in the County Court:

1. On 30 July 2020 Mr Bookham, had a discussion with Mr Wynd at the Wynd's house, which was to the following effect:

"Bookham: I hear you want to sell your house.

Wynd: Yeah.

Bookham: What have you got on it, what do you want for it?

Wynd: $600,000.00.

Bookham: What else do you want?

Wynd: Well I want to sell the house as is and I want 3 months to vacate the property.

Bookham: Ok, do you want to put that info down on a bit of paper or something? Wynd: Yeah, Ok, no worries.

Bookham: Well, just jot down what you want."

2. Mr Bookham and Mr Wynd then signed a handwritten note which read:

"Rod Wynd 0407756765 10 Lawrence St, Frankston $600,000 3 months home as is 30/7/2019 B Bookham R Wynd"

2. At an unidentified time on 30 July 2020, Mr Bookham told Mr Wynd he would get a formal Contract drawn.
4. On 31 July 2020, Mrs Lorraine Bookham unexpectedly arrived at Wynd's house, bringing with her a document she had created with a photocopier. At the top of the document was a copy of the note above that her husband and Wynd had signed the day before, and at the bottom of the document was a copy of the cheque which she delivered on this occasion to Mr Wynd. The printed name of the drawer on the cheque was B & L Bookham.
6. Mr Wynd said Mrs Bookham said to him "here's Burt's [a reference to Mr Bookham] cheque" and handed the cheque to him;

Wynd said "Okay";

Mrs Bookham said "Here is the receipt. Could you sign it, please?"

Wynd accepted the cheque from Mrs Bookham.

(f) They discussed the receipt for the deposit and Mrs Bookham wrote in a space on the document between the copies of the note and the cheque the words "received from Bookham Constructions the sum of $60,000 as deposit on sale of [the Wynd's house]. (Sixty thousand dollars) 31.07.20". Wynd was able to read and understand that text. He signed on the line immediately before the date.

(g) Mr Wynd banked the cheque. He subsequently attempted, without success, to repay the $60,000.

(h) On 4 September 2020, Mr Bookham delivered an REIV/ LIV written standard form of Contract of Sale of Land to Mr Wynd. Mr Wynd gave evidence he was surprised when he looked at the Contract because it did not have any of the special conditions that he had requested; specifically, it did not provide him with three months to leave the property and did not specifically say that the house was to be "as is". The form of Contract did, however, provide for settlement on 31 October 2020, which was three months after the date of the alleged agreement of 30 July 2020.

(i) On 27 September 2020, Mr Wynd contacted Mr Bookham by telephone. Whilst there was a dispute between Mr Bookham and Mr Wynd as to the precise contents of that conversation, it was clear Mr Wynd wanted more money to sell the property on the basis that it was worth considerably more.

(j) Mr Wynd refused to sign the Contract referred to in paragraph (h) above, and Mr Bookham then commenced County Court proceedings which sought an order for specific performance of a Contract Mr Bookham claimed was reached on 30 July and / or 31 July, 2020 between himself and Mr Wynd.

Students are required to complete the following:

Answer all of the following reflection Q1 A -D using the information provided above. In each response students will need to:

Define the relevant legal principles that apply

Outline the methods and sources used to identify appropriate legal information (e.g. textbook, internet research etc - suggested sources may be provided)

Complete any additional questions asked specific to each case

Question 1D. Counsel (the lawyers arguing the case), appearing before you, said: "What mattered was what Mr and Mrs Bookham and Mr Wynd said and did, rather than what they thought was the effect of what was said and done.

You are preparing to write your Judgment and you need to set out what is the legal test for intention to enter into a binding contract.

Required: Please set out (a) the test; (b) a brief explanation of the test in your own words and (c) the full citation of case authority for the test - just one case, but more if you are so inclined. (See either Graw's text or class notes on Intention to be bound and Offer).