Hope Island Resort Holdings P/L & Anor v Jefferson Properties (Qld) P/L & Ors

[2005] QCA 315

Queensland Court of Appeal

Built by Barristers,
For Australian Law.

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Interrogate

Catchwords

1. Contract
2. › Construction and interpretation
3. › Commercial development deed
4. › Adjustment clause for mortgage payouts
5. › Whether clause operated as comprehensive adjustment mechanism
6. › Whether warranty as to mortgage release amounts warranted precise amount or maximum amount
1. Contract
2. › Construction and interpretation
3. › General rule of construction
4. › Party not entitled to benefit from own breach
5. › Alghussein Establishment v Eton College principle
6. › Whether rule displaced by clear contractual provision to the contrary
1. Contract
2. › Warranties
3. › Breach of warranty as to accuracy of scheduled amounts
4. › Whether overstatement of mortgage amounts constituted breach
5. › Interaction between warranty clauses and adjustment clause

Quick Take

The Alghussein rule of construction — that a party cannot benefit from its own breach — is displaced where the contract contains clear provisions to the contrary, such as an unqualified adjustment mechanism that expressly deals with the consequences of over and understatements. A warranty that a mortgagee 'will release its Mortgage' for a specified amount warrants the maximum amount required for release, not the precise amount, where the commercial context involves allocated amounts across multiple lots with no individual indebtedness per lot.