Zhang & Liu Investment Pty Ltd v Nando's Australia Pty Ltd

In the case of Zhang & Liu Investment Pty Ltd v Nando's Australia Pty Ltd, the matter was before the court on appeal from a decision of an Associate Justice to grant summary judgment on a claim. The plaintiff, Zhang & Liu Investment Pty Ltd, sought to enforce a franchise agreement with the defendant, Nando's Australia Pty Ltd, which was alleged to have been breached. The crux of the dispute was the interpretation of the term "termination" within the franchise agreement, specifically whether it included expiry by the natural passage of time. The court was tasked with determining whether the Associate Justice correctly applied the principles of contract interpretation in granting summary judgment.

The legal issues central to the appeal revolved around the interpretation of the contract and the appropriate application of the rules concerning summary judgment. The court had to decide whether the Associate Justice was correct in concluding that the plaintiff's claim had no prospects of success and if the principles of contractual interpretation were properly applied. It was necessary to assess whether the term "termination" could be interpreted to include the natural expiry of the agreement, and if so, whether this interpretation warranted a different outcome. The court also needed to determine whether the summary judgment order could potentially cause an injustice to the plaintiff.

The court concluded that the Associate Justice was correct in finding that the plaintiff's claim had no prospects of success due to the clear interpretation of the contract. The term "termination" in the context of the agreement did include expiry by effluxion of time, thus the defendant was entitled to summary judgment. However, the court identified a potential injustice in the summary judgment order as it precluded the plaintiff from amending their statement of claim to clarify their case. Therefore, the court ordered that the plaintiff should be permitted to make an application to amend the statement of claim to address the issue of the contract's expiry. This ensures the plaintiff has an opportunity to present their case properly.