Waltons Stores (Interstate) Ltd V Maher - Judgment

Judgment

The High Court held that to avoid detriment through Waltons' unconscionable behaviour, Waltons was estopped from denying the contract. But not only the reliance interest was protected. The award given protected the expectation interest (as if the contract had been concluded).

Mason CJ and Wilson J, ‘the creation or encouragement by the party estopped in the other party of an assumption that a contract will come into existence or a promise will be performed and that the other party relied on that assumption to his detriment to the knowledge of the first party.’

This entails that if the plaintiff acts to their own detriment, in reliance on the allusions of the unconscionable party, equity law has the capability to intervene.

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