Archives for March 2016

When is a written agreement legally binding – Masters v Cameron revised

There seems to be a common misconception within the business community that the term ‘contract’ refers only to a formal, signed document that sets out the detailed terms of an agreement.  What people may not be aware of is that contracts are entered into every day, whether or not the parties think of them in this way. Doing something as simple as purchasing groceries from the supermarket, or entering a paid car park, usually will result in the parties entering a binding agreement even though there is no forms or signatures. In fact, there are only a few very specific types of contracts that are required to be in writing. [Read more…]

Is your confidential information really confidential?

The term confidential information is often bandied about in commercial transactions, however it is often inaccurately described.  Because of this, we are often asked to consider whether information that a party is considering disclosing as part of a commercial transaction is actually capable of being kept confidential. [Read more…]

Third line forcing and commercial contracts

Third line forcing is a form of exclusive dealing that is prohibited under the Competition and Consumer Act 2010 (Cth)(CCA).  It occurs where one corporation (Forcer) enters into a contract to supply goods or services to another (Forced Party), which includes an obligation to buy goods or services from an unrelated third party (Third Line Party).

It’s common in various commercial contracts including franchise and license agreements, for the issuer of the contract to attempt to limit or restrict who a party buys goods or services from. The reason for this is obvious in terms of the need to ensure that a uniform product is delivered to customers. The often cited example being the uniformity of the width of fries served at every McDonald’s throughout Australia and for that matter the world.

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