Welcome to this issue of Contract Law Update - April 2012
King & Wood Mallesons’ Contract Law Update summarises recent decisions in contract law. We select cases that are likely to be relevant to a broad range of commercial lawyers and succinctly identify the key legal lessons to be learnt from each decision.
In this issue we cover:
BOS International (Australia) Ltd v Babcock & Brown International Pty Ltd [2011] NSWSC 1382
In this decision, the Supreme Court of NSW considered issues regarding the interpretation of a syndicated loan agreement and whether a general obligation to disclose information would require the borrower to disclose information about its insurance policies to the lender.
Fryer Holdings Pty Ltd (in LIQ) v Liaoning MEC Group [2012] NSWSC 18
This decision involved a contract for the sale of goods and services to which the United Nations Convention on Contracts for the International Sale of Goods applied. The Supreme Court of NSW considered the scope and meaning of the term implied into the contract by the Convention that the goods must be “fit for purpose”.
RCL Kalynda Pty Ltd; RCLT URB Pty Ltd v URBEX Pty Ltd; BMD Holdings Pty Ltd [2011] VSC 650
In this decision, the Supreme Court of Victoria considered whether a Notice of Dispute provided to a party under a contract satisfied the requirements of that contract that it was sufficiently detailed to be considered as adequately identifying the Dispute.
Rehins Pty Ltd v Debin Nominees Pty Ltd (No 2) [2011] WASC 168
In Rehins Pty Ltd v Debin Nominees Pty Ltd (No 2) [2011] WASC 168, Murray J of the Supreme Court of Western Australia held that a contractual ‘best endeavours’ obligation in relation to a condition precedent may be breached by delay or inaction by that party. Importantly, a failure to use best endeavours in such a way may prevent the breaching party from relying on other entitlements to terminate the contract.