Contract Law Update — April 2013

King & Wood Mallesons’ Contract Law Update summarises recent decisions in contract law. The firm selects cases that are likely to be relevant to a broad range of commercial lawyers and identifies the key legal lessons to be learnt from each decision. The April 2013 issue covers the following cases: ALYK (HK) Ltd v Caprock Commodities Trading Pty Ltd and Anor [2012] NSWSC 1558; BGC Residential Pty Ltd v Fairwater Pty Ltd [2012] WASCA 268; Byrt v Aero Sth Pacific Pty Ltd [2012] QCA 359; Quikfund (Australia) Pty Ltd v Prosperity Group International Pty Ltd (in liq) [2013] FCAFC 5; and Electricity Generation Corporation t/as Verve Energy v Woodside Energy Ltd [2013] WASCA 36.

In this case, Slattery J considered whether a buyer of commodities could restrain a seller from making demand under an unconditional standby letter of credit (“Standby LC”) issued for the seller’s benefit. The case has important lessons for parties who agree to secure their performance by arranging Standby LCs or bank bonds, and for lawyers advising them…

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