BP Australia Pty Limited v Nyran Pty Limited [2003] FCA 520

FEDERAL COURT OF AUSTRALIA

BP Australia Pty Limited v Nyran Pty Limited [2003] FCA 520

CONTRACT – interpretation – contract for sale and supply of fuel – pricing provisions – whether ambiguity in provision applicable to new prices following Subsequent Price Negotiation – whether new prices not agreed bind purchaser failing termination – whether ambiguity in provision relating to Clean Fuel Quality Premium – meaning of 'charged' and 'any other customer in Western Australia' – relevance and admissibility of surrounding circumstances – effect of applicant's statement on evidence during course of trial Trade Practices Act 1974 (Cth) ss 87 Sale of Goods Act 1895 (WA) s 8 Property Law Act 1969 (WA) ss 7, 8, 9, 10, 12, 16 The Macquarie Dictionary, Revised 3rd ed., 2001 The New Shorter Oxford English Dictionary, 1993 G McMeel, 'Prior negotiations and subsequent conduct – The next step forward for contractual interpretation?', Law Quarterly Review, vol 119, p 272 DW McLauchlan, 'A contract contradiction', Victoria University of Wellington Law Review, vol 30, 1999, p 175 H King, 'The admissibility of extrinsic evidence as an aid to contract interpretation: pushing objectivity to absurd limits', Corporate and Business Law Journal, vol 6(2), 1994, p 187 JW Carter, Carter on Contract, Butterworths looseleaf, 2002 S Charles, 'Interpretation of ambiguous contracts by reference to subsequent conduct', Journal of Contract Law, vol 4, 1991, p 16 Mehta & Anor v Commonwealth Bank of Australia (1990) ATPR 41-026 applied Ketteman v Hansel Properties Ltd [1987] AC 189 cited Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 applied Esso Australia Ltd v Australian Petroleum Agents' & Distributors' Association [1999] 3 VR 642 considered Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 186 ALR 289followed Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896considered Bank of Credit and Commerce International SA v Ali [2001] 1 AC 251 considered Ray Brooks Pty Ltd v NSW Grains Board [2002] NSWSC 1049 disapproved Prenn v Simmonds [1971] 1 WLR 1381 cited Reardon Smith Line Ltd v Yngvar Hansen-Tangen (The Diana Prosperity) [1976] 1 WLR 51 cited LMI Australasia Pty Ltd v Baulderstone Hornibrook Pty Ltd [2003] NSWCA 74 approved Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 185 ALR 152 considered Ex parte Dawes; Re Moon (1886) 17 QB 275 followed Bakker v Chambri Pty Ltd (1986) 4 BPR 9234 approved Glynn v Margetson & Co [1893] AC 351 cited Fitzgerald v Masters (1956) 95 CLR 420 cited Punjab National Bank v De Boinville [1992] 1 WLR 1138 cited Postle v Sengstock [1994] 2 Qd R 290 cited Burger King Corp v Hungry Jack's Pty Ltd [2001] NSWCA 187 cited Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 applied Ankar Pty Limited v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549 cited Coghlan v S H Lock (Australia) Ltd (1987) 70 ALR 1 cited BP AUSTRALIA PTY LIMITED v NYRAN PTY LIMITED W144 of 2002 RD NICHOLSON J 28 MAY 2003 PERTH