Kept in Suspense: Supervening Illegality in Contract Law and the High Court Appeal in Laundy Hotels (Quarry) Pty Ltd v Dyco Hotels Pty Ltd

Abstract

In Laundy Hotels (Quarry) Pty Ltd v Dyco Hotels Pty Ltd, the High Court of Australia must consider the nature and effect of supervening illegality on an executory contract for the sale of land and a business. The appeal is an opportunity for the High Court to provide clear guidance as to how government regulation affects executory contracts entered into before the regulation comes into force. This column explores whether supervening illegality can suspend or sterilise particular obligations in the executory contract, while leaving other obligations unaffected.