Australian Woollen Mills Pty Ltd v The Commonwealth
| Australian Woollen Mills Pty. Ltd. v. The Commonwealth | |
|---|---|
 | |
| Court | High Court of Australia |
| Full case name | Australian Woollen Mills Pty. Ltd. v. The Commonwealth |
| Decided | 04 May 1954 |
| Citation(s) | [1954 HCA 20; (1954) 92 CLR 424]] |
| Case history | |
| Subsequent action(s) | none |
| Court membership | |
| Judge(s) sitting | Dixon CJ, Williams, Webb, Fullagar, and Kitto JJ |
Australian Woollen Mills Pty. Ltd. v. The Commonwealth [1954] HCA 20; (1954) 92 CLR 424] is a leading case regarding what is a legally binding offer.[1]
Background
On 30 June 1946, the Australian government introduced a subsidy for woollen manufacturers. In 1948, the Australian government discontinued paying the subsidy, leaving AWB with a substantial amount of wool on hand, that had not received the subsidy. As a result, AWB sued for breach of contract, whilst the government denied liability on the grounds that there was no legally binding contract between the parties.
Held
The High Court ruled that there was no legally binding contract between the parties, as all the government had done was merely make a statement on government policy (i.e. the subsidy), which alone was not an offer capable of acceptance. The court stated "what is alleged to be an offer should have been intended to give rise, on the doing of the act, to an obligation ... in the absence of such an intention, actual or imputed, and alleged "offer" cannot lead to a contract: there is, indeed, in such a case no true "offer"."