CONTRACTS — building contract — claim to set aside contract for misleading or deceptive conduct — whether contract void for uncertainty — works to be performed not identified — held contract of no effect — set-off agreement of no effect as nothing to set off — no need for order under Australian Consumer Law s 237 — restitution of monies paid subject to counter-restitution for work done — loan agreement unaffected — specific performance of security and further assurances obligations.
Quick Take
1A building contract that fails to define the scope of works to be performed — where no plans are identified, the specification is blank, and the only description is a generic reference to construction of a dwelling — is void for uncertainty and of no contractual effect.
2Where a contract is void for uncertainty rather than voidable for misleading or deceptive conduct, no order under Australian Consumer Law s 237 is necessary or appropriate; the proper remedy is a declaration of no legal effect coupled with restitution at common law, subject to counter-restitution for work actually performed.
3Where a set-off agreement purports to discharge obligations under a void contract, the set-off agreement is itself of no effect, and the underlying obligations (here, a loan agreement) continue unaltered and are enforceable including by specific performance of security provisions.
