Lecture 5 BFA601 Semester 1 2018.pptx

Restraint of trade when do they protect a business

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Restraint of trade? When do they protect a business, rather than becoming an inappropriate restraint? Can a geographical area be set for a business’s operation? Consider (5.86 - 88) Consider (5.86 - 88)
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Misleading conduct in contract law Misleading conduct in contract law Nordenfelt v Maxim Nordenfelt Guns & Ammunition Co Ltd Two tests for reasonableness: 1. It must be reasonable in the interests of the parties, that is, the relevant party must have a legitimate interest to protect and the restraint must be no wider than is necessary to protect that interest. 2. It must be reasonable in the interests of the public, that is, it must be of some public benefit or at least not injurious to the public. Restraint clauses (5.89) Restraint clauses (5.89)
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Misleading conduct in contract law Misleading conduct in contract law Adamson v New South Wales Rugby League Note: whilst the ACL contains provisions dealing with trade restraint, ss 21 and 22 specifically provide that the Act does not apply to specified types of contract, which are therefore subject to common law principles. Sports and restraint of trade (5.91) Sports and restraint of trade (5.91)
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Misleading conduct in contract law Misleading conduct in contract law Agreements between manufacturers and retailers – usually void if setting price or imposing unreasonable restraint on trade What of exclusive selling agreements, what if they restrict the ability of a seller to stock other products? Supply agreements (5.92) Supply agreements (5.92)
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Misleading conduct in contract law Misleading conduct in contract law A contract may not be void if the offending provisions can be severed Can a contract be upheld with part severed? Severance (5.92) Severance (5.92)
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