The parties can enter into two contracts for the same block of land but different works, such as a builder and an owner can have a contract for the construction of the house and a separate contract for the landscaping.
The parties cannot legally enter into two contracts for the same scope of work on the same piece of land. Generally, where there are two fundamentally inconsistent contracts signed between the parties, it is presumed that the parties have rescinded the original contract and substituted it with the second contract. However, it is common for parties to have multiple signed documents that form one contract. For instance, the parties may have signed a quotation stipulating the contract sum and the payment terms first, and then signed general conditions and terms at a later date. In those circumstances, both signed documents are considered one contract.
Where you have multiple signed documents forming one contract, it is more likely for a dispute to arise due to the uncertainty or ambiguity within the contract. A contract term is considered ambiguous if it is reasonably subject to more than one interpretation. When determining an uncertainty or ambiguity within the contract, courts generally would consider the intention of the contracting parties and the entire contract, including its background, purpose and operation.
Need contract advice?
Contact our Workplace Relations and Legal team on 02 6175 5900.