What Happens If the Wrong Price Is Written in a Contract of Sale in NSW?
3rd July, 2026
A wrong price in a contract of sale in New South Wales (NSW) can cause serious issues for both parties. Purchasers and vendors rely on the contract to clearly record the agreed price. However, errors can still occur during drafting or communication between parties.
Before Exchange of Contracts
Before exchange, there is no binding contract between the purchaser and vendor. The price can still be corrected without legal consequences. A vendor may amend a drafting error in consultation with their conveyancer or agent. The purchaser cannot enforce an incorrect price at this stage.
After Exchange of Contracts
After exchange, the contract becomes legally binding. This is where pricing errors become more significant. A mistake such as a missing digit or incorrect figure can create dispute.Sometimes the error is obvious, and both parties recognise it immediately. In other cases, disagreement arises about what was agreed and legal advice is usually required to resolve the issue quickly.
When Courts May Correct the Contract
A court may correct a contract where it does not reflect the true agreement. This process is known as rectification. The key question is what the parties objectively intended to agree.
In Simic v New South Wales Land and Housing Corporation (2016) HCA 47, the High Court confirmed this approach. The Court held that a written contract can be corrected if clear evidence shows a mistake. The focus is on objective intention, not later regret or misunderstanding. However, courts will not change a contract simply because a party made a bad deal.
Disclaimer: The cases referenced in this blog are publicly available information and are not matters on which our firm has worked or provided representation for.
Mistakes and Unfair Advantage
Issues become more complex if one party knows about the mistake. A purchaser or vendor cannot usually take advantage of an obvious error. In those situations, equity may intervene to prevent unfair outcomes. The contract may be set aside or corrected depending on the circumstances.
What Purchasers and Vendors Should Do
Both parties should review all contract details carefully before exchange. Pricing should always be confirmed with legal representatives and agents. Any inconsistency should be raised immediately before signing. Early action reduces the risk of dispute after exchange.
Records such as emails and drafts should be kept as evidence.
How We Can Help
A wrong price in a contract of sale can lead to legal uncertainty and delay. The outcome depends on whether the error was obvious, accidental, or known to one party. Purchasers and vendors should seek legal advice as soon as a discrepancy is identified.
The team at Bangalow Conveyancing assists clients with contract reviews, price corrections, and property transactions across the Northern Rivers, including, Byron Bay, Mullumbimby, Bangalow, Brunswick Heads, Lennox Head, Ballina, Lismore, and Murwillumbah.
We help ensure every NSW contract is accurate, compliant, and protects your interests.
Contact our team today for professional conveyancing support and contract guidance tailored to your property matter.
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