Berri (NSW) Limited v Pepsi-Cola Bottlers Australia Pty Ltd

Berri (NSW) Limited (Berri) and Pepsi-Cola Bottlers Australia Pty Ltd (Pepsi) were parties to a dispute concerning the supply of fruit juice. Berri alleged that Pepsi had breached a contract by failing to take delivery of certain quantities of juice. The matter came before the Supreme Court of New South Wales.

The central legal issue before the court was whether Pepsi had breached its contractual obligations to Berri. Specifically, the court had to determine if Pepsi's conduct constituted a repudiation of the contract, thereby entitling Berri to claim damages for the full extent of the contract's expected performance. This involved an examination of the terms of the supply agreement and the parties' conduct in relation to those terms.

The court found that Pepsi's actions, particularly its failure to provide adequate forecasts and its subsequent refusal to accept delivery of the contracted juice, amounted to a repudiation of the agreement. His Honour, Nancarrow J, applied the principles of contract law, holding that a party's conduct can demonstrate an intention not to be bound by the contract, even if they do not expressly state their intention to terminate. The court considered the objective conduct of the parties to ascertain their intentions.

The court ordered that Berri was entitled to recover damages from Pepsi for the loss of profits that would have been earned had the contract been fully performed.