Wikiversity Law Reports/Pirie v Saunders

High Court of Australia

TL;DR: A file note made by one party to negotiations for a lease, listing the terms agreed so far, does not satisfy the Statute of Frauds.

Facts

 * A landlord and a (would-be) tenant entered negotiations to let out a shop.
 * A formal lease agreement was at least partially prepared by one party but not executed.
 * The Conveyancing Act 1919-1954 (NSW), s 54A (NSW Statute of Frauds) required signed writing for a lease to be binding.
 * The tenant obtained a copy of a file note made by the landlord's solicitor recording the landlord's instructions in relation to the preparation of the formal lease agreement. The note recorded the terms agreed so far but also noted that other terms remained outstanding.
 * The tenant sought to compel the landlord to perform the lease, trying to use the file note to satisfy the Statute of Frauds.

Held

 * The note recorded the state of incomplete negotiations, not a finished agreement.
 * The note was not signed by the landlord. The 'authenticated signature fiction' was discussed but not applicable to the facts.
 * Therefore the tenant could not enforce the lease.

Other publishers' references

 * [1961 HCA 4]
 * (1961) 104 CLR 149
 * Networked Knowledge Contract Law Casenote: Pirie v Saunders