Midcoast Petroleum Pty Ltd v Keldros Pty Ltd

The dispute in Midcoast Petroleum Pty Ltd v Keldros Pty Ltd was heard by the Supreme Court of New South Wales. Midcoast Petroleum sought to enforce a fuel supply agreement against Keldros, which owned and operated a petrol station. The central issue was whether the fuel supply agreement applied to the supply of products to the particular premises operated by Keldros. The court was tasked with interpreting the agreement and determining the extent of Midcoast's obligations under it.

The legal issues involved the proper construction of the fuel supply agreement and whether it was applicable to the petrol station premises in question. Midcoast argued that the agreement covered all products supplied to the premises, including those for the retail sale of petrol. Keldros contended that the agreement was limited to industrial or commercial use and did not apply to the retail sale of petrol. The court had to determine the scope of the agreement and whether it included the supply of petrol for retail purposes.

The court found that the fuel supply agreement was broader than Keldros's interpretation suggested. The language of the agreement was held to encompass the supply of petrol for retail sale, thus applying to the petrol station premises. The court emphasised the need to consider the commercial purpose of the agreement and the context in which it was made. It ruled that the agreement was indeed applicable to the supply of petrol for retail purposes at the petrol station. Consequently, Midcoast was entitled to enforce the agreement against Keldros for past and future remediation costs, make good, regulatory claims, and a claim in debt.