Robbies Bar and Bistro Limited v Robbies Bar & Bistro Franchising Limited (in liq)

In Robbies Bar and Bistro Limited v Robbies Bar & Bistro Franchising Limited (in liq), the plaintiffs sought the unpaid balance of the purchase price for the sale of a business comprising the franchise rights of a chain of restaurants operating under the name ‘Robbies’. The first plaintiff, Robbies Bar and Bistro Limited, was the vendor, and the defendant, Robbies Bar & Bistro Franchising Limited, was the purchaser. The dispute arose due to the defendant's refusal to pay the outstanding balance of the purchase price, amounting to $436,998. The legal issues before the court were whether the purchase price was a fixed sum of $1,500,000 or if it was the sum of the payments made over a 10-year period, and if the plaintiffs were entitled to interest on the outstanding amount. The court found that the purchase price was indeed a fixed sum of $1,500,000, as evidenced by the repeated references to "the balance" in the relevant clauses. The court also found that the plaintiffs were entitled to interest on the outstanding balance from the date of their demand for payment. Consequently, the court ordered the defendant to pay the outstanding balance of $471,343.59, plus interest of $181,695.38, and the costs of the proceeding.