CERTIANTY CASES

Question 1

Biotechnology Australia Pty Ltd v Pace FACTS

Answer 1

• Biotech offered Dr. Pace a salary package that included an option to join the senior staff equity sharing scheme.
• This specific offer was never officially made.

Question 2

Biotechnology Australia Pty Ltd v Pace HELD

Answer 2

• NOT enough certainty to enforce the contract
• numerous elements to the senior equity scheme that was not negotiated and left the future discretion.
• Although the court has a desire to not frustrate a contract the terms were so uncertain that it would be inappropriate for the court to fill in the gaps.

Question 3

Fletcher Challenge Ltd v ECNZ FACTS

Answer 3

Two large companies enter into negotiations to transfer shares in a gas field and a head of agreement was drafted.

Question 4

Fletcher Challenge Ltd v ECNZ HELD

Answer 4

• The parties were not ad idem on the terms of the contract and therefore the level of certainty required for the head of agreement to be enforceable was not reached.

Question 5

Tower Insurance v Nicon Ltd FACTS

Answer 5

Dispute between Nicon (CHCH demolition contactor) sued Tower insurance (insured numerous properties damaged in CHCH earthquakes).

Question 6

Tower Insurance v Nicon Ltd HELD