Consideration
31 I reject the McLeod parties' arguments. Gleeson CJ, Gaudron, McHugh and Hayne JJ explained the principles applicable to the construction of agreements to vary an existing contract in Federal Commissioner of Taxation v Sara Lee Household and Body Care (Australia) Pty Limited (2000) 201 CLR 520 at 533-534 [22]-[24], and in Concut Pty Limited v Worrell (2000) 176 ALR 693 at 698-699 [19], Gleeson CJ, Gaudron and Gummow JJ said:
[19] The relevant principles are well settled. In FCT v Sara Lee Household & Body Care (Aust) Pty Ltd, [(2000) 201 CLR 530 at 533 [22]] Gleeson CJ, Gaudron, McHugh and Hayne JJ said:
When the parties to an existing contract enter into a further contract by which they vary the original contract, then, by hypothesis, they have made two contracts. For one reason or another, it may be material to determine whether the effect of the second contract is to bring an end to the first contract and replace it with the second, or whether the effect is to leave the first contract standing, subject to the alteration. For example, something may turn upon the place, or the time, or the form, of the contract, and it may therefore be necessary to decide whether the original contract subsists.
Their Honours went on [at 534 [23]] to refer to the judgment of Taylor J in Tallerman & Co Pty Ltd. [v Nathan's Merchandise (Victoria) Pty Ltd [(1957) 98 CLR 93 at 143-144] Taylor J had rejected submissions that (a) "it is impossible by a subsequent agreement, merely, to vary or modify an existing contract" and (b) "[an] agreement which purports to vary an existing contract operates … first of all to abrogate entirely the existing contractual relationship and, then, to reinstate the terms of the old contract as varied or modified by the new agreement". [cf Meek v Port of London Authority [1918] 2 Ch 96] His Honour, to the contrary, accepted the propositions that (a) the earlier contract might be rescinded altogether, the determining factor being the intention of the parties disclosed by the later agreement; (b) partial rescission is a variation, not the destruction, of the contractual relationship between the parties; and (c) the earlier contract may be varied by way of (i) partial rescission with or without the substitution of new terms for those rescinded and (ii) the addition of new terms with or without any partial rescission at all.[98 LR at 144] In Tallerman, Kitto J [98 CLR at 135 see also at 122-123 per Williams J] spoke in terms which involved acceptance of propositions (a) and (b) as identified above, adding that while "in strict logic" a variation may be a new contract, "the discharge of an old contract is a matter of intention". (emphasis added)
32 In my opinion, the deed is a second contract relating to the ILUA area. Indeed, cl 3(a)(ii) of the deed expressly provided that the ILUA was "replaced by and substituted with the ILUA as amended by this Deed". The question of how the deed might operate in respect of the ILUA outside the statutory context created by the Act, and in particular s 24EA(1), would require an examination of the intention, ascertained objectively, (as explained in Toll (FGCT) Pty Limited v Alphapharm Pty Limited (2004) 219 CLR 165 at 178-180 [38], [40]-[41] per Gleeson CJ, Gummow, Hayne, Callinan and Heydon JJ) of the parties, first, to the ILUA and, secondly, to the deed. That enquiry raises the immediate difficulty that not all of the 14 individuals who, under cl 1.2(e) of the ILUA, were jointly and severally bound by it as members of the native title party signed the deed where the three of them who did not sign it, being some of the Conlon parties, were as at 16 February 2015 living and of full capacity.
33 As a matter of commonsense, it is difficult to see how the parties to the ILUA could be found to have intended to enter into a new agreement, being the deed, where a number of the individuals who were jointly and severally bound by the ILUA (under cl 1.2(e)) were not one of the individuals who were parties to, bound by or agreed to the terms of the deed. The only objective manifestation of the intention of the parties to the ILUA as to the deed is that only nine of the individuals and QGC, agreed while three living parties with contractual capacity did not agree to vary the ILUA.
34 Moreover, it is impossible to accept the McLeod parties' argument that, in some way, the authorisation under s 251A of the Act that occurred on 13 March 2010 created some enduring authority that extended beyond making and giving effect to the ILUA in the terms that were before the meeting and were signed at or immediately after it. In particular, that authorisation did not create an authority for the native title party, or a majority of its members, subsequently to make a new agreement that could include whatever terms those individuals thought desirable and to which QGC also agreed.
35 The authorisation that s 251A envisages is the conferral of a power to enter into a specific contract, being an indigenous land use agreement. But that authorisation is limited to the entry into, and subsequent performance of, such an agreement in the terms for which the authorisation is given. It is not a general authorisation to enter, at a future time, one or more different contracts with new terms that were not considered by the persons who, earlier, had granted the authorisation.
36 The power of the parties under cl 22(c) of the ILUA to enter into a written variation of it was in the nature of an agreement to permit the parties later to agree new terms for another indigenous land use agreement, which might replace or vary the existing ILUA: Concut 176 ALR at 698-699 [19]. But cl 22(c), itself, did not authorise or permit any variation, whatever its terms, to bind the native title party without a new authorisation, under s 251A, to make that new contract. As Gibbs CJ, Murphy and Wilson JJ said in Booker Industries Pty Limited v Wilson Parking (Queensland) Pty Limited (1982) 149 CLR 600 at 604:
It is established by authority, both ancient and modern, that the courts will not lend their aid to the enforcement of an incomplete agreement, being no more than an agreement of the parties to agree at some time in the future. Consequently, if the lease provided for a rental "at a rental to be agreed" there would clearly be no enforceable agreement. (emphasis added)
37 In my opinion, properly understood, cl 22(c) was simply a statement by the parties to the ILUA that the only manner in which its provisions could be varied was by a subsequent agreement executed by each party. The clause was not an authority to make any variation that they subsequently might agree, or which the parties, or some of them, might think desirable.
38 Nor do I accept the McLeod parties' argument that cl 3 of the ILUA operated to allow a majority of the then living 14 individuals, who had capacity to contract, to enter into the deed and, by doing so, vary the ILUA.
39 For the purposes of cl 3(a) of the ILUA, there was no decision "required" to be made "under" the ILUA to vary it. No provision of the ILUA required any of the parties to it to do anything to vary the ILUA, other than cl 4(d) which allowed the parties to agree, as they did, to extend the time before which the ILUA could be registered so that it would remain in force and effect. Rather, the decision of the nine individuals, who were its signatories, to enter into the deed for the purpose of amending the ILUA, cannot be characterised, within the meaning of cl 3(a) of the ILUA, as a decision that the native title party was "required" to make "under" the ILUA at all. It was a decision extraneous to the matters for which the ILUA itself required the native title party to make decisions. A decision intended to change the terms of the ILUA in the future so as to alter the relationships that it created is not a decision that the native title party was required to make under the ILUA.
40 To understand the issue in this way demonstrates why the deed is not an instrument that has any force or effect. First, all of the persons jointly and severally forming the native title party did not agree to the deed or to vary the ILUA. Secondly, the deed cannot operate consistently with the terms of s 24EA(1). That is because, as a matter of statutory construction, the deed cannot have any force or effect to change the contract, being the ILUA, the details of which are registered on the Register. The scheme of the Act is to require an indigenous land use agreement to be authorised in accordance with s 251A so that when made and registered it will create, among other things, the lawful authority for one party to do future acts in the area covered by the ILUA and it will give benefits to the parties to it, including persons who claim to, or do, hold native title, all of whom are made parties to the indigenous land use agreement by force of s 24CD(1) and (3).
41 The persons who hold or claim to hold native title in relation to the relevant area authorise the making of an ILUA under one or other of the two processes to which s 251A(1) refers. It is necessary for such an authorisation to be created under s 251A and for a person seeking to get the benefit of registration of an ILUA to satisfy the Registrar under ss 24CG(3)(b) and 24CL(1) and (3), that not only has the making of the particular agreement been authorised in accordance with s 251A, but also that all reasonable efforts had been made to ensure that all persons who hold, or might hold, native title in relation to the land or waters covered by the ILUA had been identified and authorised its making.
42 In my opinion, the deed cannot operate so as to include terms, or permit activities to be undertaken, that are inconsistent with the terms of the registered ILUA, when the registered ILUA continues, by force of s 24EA(1)(a), to operate unamended as a contract among the parties to it and as binding all persons who hold, or who may hold, native title in relation to any of the land or waters covered by it who are not already parties to it. The Act does not permit an instrument such, as the deed, to supervene the contractual force that s 24EA(1)(a) gives to an ILUA the details of which are registered.
43 Parties to a registered indigenous land use agreement can agree to enter into a variation of it. An agreement to vary an existing agreement, including an indigenous land use agreement that is registered under the Act, is a new contract: Sara Lee 201 CLR at 533-534 [22]-[24]; Concut 176 ALR at 698-699 [19]. The deed envisaged in cl 3(a)(ii) and (5) that, first, it was a new contract that would, somehow, "replace" and be "substituted" for the original terms of the ILUA that it varied, yet, secondly, this would not affect the registration of the ILUA except if and to the extent that the Registrar might enter details of the deed in the Register. However, if the deed were then to operate as an indigenous land use agreement, it had to (but did not) meet the requirements for registration, including ss 24CG(3) and 24CL, because it had not been authorised under s 251A by all the persons who hold or may hold native title in the ILUA area.
44 Because the deed is a new contract it is not the agreement, being the ILUA, that the meeting of 13 March 2010 authorised under s 251A. The persons present at the meeting had no knowledge of, and could not have intended to make, the deed. Nor did the 13 March 2010 meeting give authority to the native title party, or a majority of its members, to change or vary the ILUA itself. The only authority that the native title party had pursuant to s 251A was to carry the ILUA into effect and to make decisions "under" it. That was not an authority to vary the ILUA. Clause 22(c) simply provided that any variation to the ILUA had to be in writing executed by both parties (QGC and the native title party). The Act provided that any such variation if subsequently made, itself, had to be registered as an indigenous land use agreement before it could operate to vary (as a contract at common law or as a contract given force under s 24EA(1)) an already registered ILUA.
45 Thus, a variation, such as that sought to be accomplished by the deed must be an ILUA and must go through the process of registration under s 24CL. However, to so qualify it would require authorisation under s 251A, which, plainly, the deed lacks.