Imprecise Contracts and Good Faith

by

Ed.

From sladen.com.au: The Victorian Supreme Court’s decision in Beecham Motors Pty Ltd v General Motors Holden Australia NSC Pty Ltd emphasises the importance of precise contractual language, ruling that GM Holden was not obligated to supply vehicles throughout the contract term due to the imprecise language in the agreement.

The court also found that no term could be implied to ensure supply, as it was unnecessary for the business efficacy of the contract and contrary to the parties’ intentions.

Additionally, the court ruled that claims of breach of good faith under the Franchising Code of Conduct could not stand alone and GM Holden did not breach its good faith obligations.

Filed under: Business Law