(High Court of Australia) If, when a contract is negotiated on behalf of a company, the directors bona fide think it in the interests of the company as a whole that the transaction should be entered into and carried into effect they may bind themselves by the contract to do whatever is necessary to effectuate it.
Contract – Whether concluded bargain – Agreement by directors as to the future exercise of fiduciary powers – Illegality – Pleading – Non assumpsit – Illegality.
Kitto J said that an agreement, even between private parties, is not void for uncertainty ‘because it leaves one party or group of parties a latitude of choice as to the manner in which agreed stipulations shall be carried into effect, nor does it for that reason fall short of being a concluded contract’
McTiernan(1), Kitto(2), Menzies(3), Windeyer(4) and Owen(5) JJ.
(1964) 112 CLR 597, [1964] HCA 41
Austlii
Australia
Cited by:
Cited – Fulham Football Club Ltd v Cabra Estates plc CA 1994
Fulham, as lessees of Craven Cottage, agreed with CABRA, a developer, who had applied for planning permission to redevelop the ground, shortly before a public inquiry which had been set up to consider the planning application; and also a proposal by . .
Lists of cited by and citing cases may be incomplete.
Updated: 29 September 2021; Ref: scu.241637
