At the beginning of any business, relationship parties will have
discussions about what it is they are looking to achieve together
– be it a sale, a joint venture or a lease. While such
discussions will usually start out in an informal manner it is not
uncommon for them to progress to written exchanges prior to the
entry into a more formal legal contract. However, whether
communications about the planned endeavour have been verbal or in
writing, it will always be a matter for a Court to determine on the
facts what the parties have actually agreed and whether any such
agreement is legally binding.
This issue was recently addressed by the Queensland Supreme
Court in the case of Artesian Hospitality Pty Ltd v Tsuen Fung
Holdings Pty Ltd . The case involved negotiations between
parties to a proposed lease in the Brunswick Street Mall in
Fortitude Valley. The owner of the property was represented by one
of the sons of the family-owned business who engaged
