Trans Petroleum (Australia) Pty Ltd v White Gum Petroleum Pty Ltd

Trans Petroleum (Australia) Pty Ltd initiated proceedings against White Gum Petroleum Pty Ltd concerning the termination of a fuel reselling agreement. The dispute was heard by the Federal Court of Australia. The primary issues before the Court were whether the power to terminate the agreement on notice and without cause must be exercised in good faith, and if the respondent's action in terminating the agreement was unconscionable under the Trade Practices Act 1974 (Cth).

The Court considered the proper construction of sections 32(11) and 32(12) of the Oilcode and whether the respondent's conduct in terminating the agreement without invoking the dispute resolution or mediation procedures was unconscionable. The Court examined whether the power to terminate must be exercised in good faith and if the failure to follow the specified procedures constituted unconscionable conduct. The trial counsel for Trans Petroleum expressly conceded or abandoned certain points during the trial, which raised the question of whether these points could be relied upon on appeal.

The Court concluded that the power to terminate the agreement could be exercised without cause, but it must still be exercised in good faith. The Court found that the failure to follow the specified procedures did not render the termination unconscionable. The Court further held that points expressly conceded or abandoned by trial counsel could not be relied upon on appeal. The appeal was ultimately dismissed.