Booker Industries v Wilson Parking (Qld) (1982) 149 CLR 600

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  • Booker and Wilson entered into an agreement to rent a car park and service station.
  • When they made the agreement, they were still trying to settle on an rent amount.
  • The contract stipulated if they could not agree on a rent, then a 3rd party arbitrator would decide.
  • They could not decide on a rental amount.
  • Wilson tried to exercise this option but Booker said that the contract was unenforceable due to uncertainty – i.e. it was just an agreement to agree.
  • Was the agreement enforceable?
  • The Court held that the agreement was enforceable.
  • Had the agreement not specified a mechanism to resolve the issue, then it would have been unenforceable.
  • However, because the parties had agreed on what to do if they could not agree, then the agreement was complete and therefore enforceable.

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