Airport City Hotels Services Pty Ltd v Grand National Concierge Pty Ltd (No 2)

Airport City Hotels Services Pty Ltd (Airport City) sued Grand National Concierge Pty Ltd (GN Concierge) over a contract that provided for Airport City to offer hotel transfers to travellers in exchange for a sales commission from GN Concierge. The dispute centred on the level of the commission, the impact of oral conversations on the terms of the contract, and whether there was a variation of the contract that included a guarantee of ticket sales. The matter was heard in the Federal Circuit Court of Australia.

The primary issue was whether the oral conversations between the parties constituted a variation of the contract that established a commission rate of 10% of gross revenue and a guarantee of ticket sales. Airport City argued that GN Concierge had breached the contract by failing to pay the agreed commission and guarantee sales. GN Concierge countered that the commission rate was 5% and denied any guarantee of ticket sales. The court had to determine the correct commission rate, whether there was a binding guarantee, and the effect of the oral conversations on the contract.

The court found that the written contract did not specify a commission rate but did mention a "commission to be agreed". The court held that the oral conversations between the parties amounted to a variation of the contract, establishing a 10% commission rate. Furthermore, the court determined that there was no guarantee of ticket sales as such a term would have required express written agreement. The court ruled in favour of Airport City on the commission rate and awarded damages for the unpaid commission. The cross-claim was dismissed, and costs were awarded to Airport City.

The Federal Circuit Court ordered that GN Concierge pay Airport City $280,985.79 inclusive of interest. The cross-claim was dismissed, and the cross-claimant was ordered to pay the costs of the cross-defendants. This decision established the binding nature of the oral variation of the commission rate while clarifying the absence of a guarantee of ticket sales in the contract.