Contract law update: Cedar Meats Pty Ltd v Five Star Lamb Pty Ltd  VSC 164
In this case, the Victorian Supreme Court looked at the rules of abandonment of contracts and when a clause will be a penalty clause.
This case demonstrates that even if a party refuses to terminate an agreement and subjectively did not intend to do so, their outward actions may demonstrate they have abandoned it. By not expressly or impliedly reserving any rights that may have accrued under the agreement prior to the abandonment, they may also be taken to have abandoned them too. The case also confirms that a breach is not necessary for the law on penalties to apply — all that is required is a link between the relevant payment and securing the performance of primary obligations.
This case centred on a manufacturing, processing and packaging services agreement between an abattoir (Cedar Meats) and a lamb producer (Five Star) entered into in 2009. The agreement stipulated that Five Star was to provide certain daily volumes of lamb to Cedar Meats…
If you are registered and logged in to the site, click on the link below to read the rest of the King & Wood Mallesons briefing. If not, please register or sign in with your details below.
News from King & Wood Mallesons
News from The Lawyer
Briefings from King & Wood Mallesons
Principals and contractors need to be aware that in not registering security interests under the PPSA 2009, they may risk serious consequences.
The New Companies Ordinance (NCO) will come into effect on 3 March 2014. It includes changes that affect the way documents may be executed.
Analysis from The Lawyer
Shanghai’s ground-breaking Pilot Free Trade Zone could mark the beginning of the long-awaited liberalisation of China’s legal services sector.
Hong Kong IPO activity is hotting up again, but UK legal stalwarts are looking over their shoulders as US rivals make up ground fast