| CITATION: | Adelaide Nut Distributors Pty Ltd v Plus Sales Pty Ltd [2012] QCATA 4 |
| PARTIES: | Adelaide Nut Distributors Pty Ltd t/as Yummy Snack Foods (Applicant/Appellant) |
| v | |
| Plus Sales Pty Ltd (Respondent) |
| APPLICATION NUMBER: | APL336-11 |
| MATTER TYPE: | Appeals |
| HEARING DATE: | On the papers |
| HEARD AT: | Brisbane |
| DECISION OF: | Richard Oliver, Senior Member |
| DELIVERED ON: | 13 January 2012 |
| DELIVERED AT: | Brisbane |
| ORDERS MADE: | Leave to appeal granted.1. The decision of the Tribunal made on the 8 August 2011 is set aside and instead the applicant must pay the respondent the sum of $6,050.00 by 28 February 2012.2. The application is remitted to the minor civil disputes jurisdiction for damages for failing to give three months notice to terminate the contract to be assessed.3. |
| CATCHWORDS: | Minor Civil Dispute – where failure to give three months notice to terminate the contract in accordance with its terms – where term of the contract open ended – whether the notice provision is enforceable – where damages for failing to give required notice unliquidated – where damages need to be assessed Queensland Civil and Administrative Tribunal Act2009, s 142(3) QUYD Pty Ltd v Marvass Pty Ltd [2009] 1 Qd R 41 Glenwood Properties Pty Ltd v Delmoss Pty Ltd [1986] 2 Qd R 388 |
APPEARANCES and REPRESENTATION (if any):
This matter was heard and determined on the papers pursuant to s 32 of Queensland Civil and Administrative Tribunal Act2009 (QCAT Act).
REASONS FOR DECISION
Adelaide Nut Distribution and Plus Sales entered into a written account management agreement, at the latest, on 5 October 2009. The document sets out each party’s responsibilities and obligations under the account management agreement. The agreement identifies the accounts that will be managed by Plus Sales, and sets out its responsibility in trade negotiations, promotional submissions, business reviews etc.
The agreement provides that upon Plus Sales performing its obligations under the agreement Adelaide Nut Distribution will pay it $5,500 per month plus GST. Payment is to be made on the 7th day after the close of the month when Adelaide Nut Distribution provides sales value data for each payment.
The agreement does not have any end date but can be terminated on certain conditions by either party. If it is to be terminated by Adelaide Nut Distribution, it must provide information to Plus Sales which includes the sales performance and/or lack of integrity or misconduct by Plus Sales, if that is relied upon. There is an obligation on Adelaide Nut Distribution to…
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- Case
- [2012] QCATA 4
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the notice provision in the contract was enforceable, particularly given that the term of the contract was open-ended. The court had to determine the enforceability of the notice clause and assess the damages resulting from the failure to provide the required notice. Given that the damages for the failure to give notice were unliquidated, the court also needed to decide on the appropriate method for assessing these damages.
The court found that the notice provision in the contract was enforceable and that the failure to provide the required notice constituted a breach of contract. The Supreme Court set aside the previous decision of the Tribunal and directed that the applicant must pay the respondent the sum of $6,050.00 by a specified date. Furthermore, the case was remitted back to the minor civil disputes jurisdiction to assess the damages for the failure to give three months' notice to terminate the contract. The court's decision highlighted the importance of adhering to contractual notice provisions, even in open-ended agreements.
Orders
Orders of the court
Leave to appeal granted.1.
The decision of the Tribunal made on the 8 August 2011 is set aside and instead the applicant must pay the respondent the sum of $6,050.00 by 28 February 2012.2.
The application is remitted to the minor civil disputes jurisdiction for damages for failing to give three months notice to terminate the contract to be assessed.3.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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