High Court of Australia
PATRICIA'S CHOCOLATES AND CANDIES
HIGH COURT (1947.
[HIGH COURT OF AUSTRALIA]
PETERS AMERICAN DELICACY COMPANY
LIMITED AND ANOTHER . . .¢ APEEULANTS;
PLAINTIFFS, AND
PROPRIETARY LIMITED. DerrenDAnt,
- ResPonpeEnt.
ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES.
H.C. or A. Contract—Restraint of Trade—Validity—Reasonableness—W holesaler and Retailer
1947. Ww
Sypney, Aug. 13, 14.
MELBOURNE, Oct. 1.
Latham 0.J., Rich, Starke, Dixon, McTiernan and Williams JJ.
—Injunction.
A contract in writing provided that in consideration of the appellants' undertaking to supply the respondent for a period of sixty months with ice cream and ices of the several descriptions and at the relative prices set out in a schedule, in such quantities as the respondent might from time to time order, the respondent agreed to purchase the goods so supplied. By clause 4 it was provided that the price or prices could be altered by the appellants on giving seven days' notice and if the alteration was by way of increase and the respondent was unwilling to pay such increased prices, it could notify the appellants accordingly and the contract should " thereupon be determined so far only as it concerns or relates to the goods " the prices of which were to be increased. 'The contract further provided :—* 9. So long as you shall be able and willing to supply me/us with ice cream at the respective prices set out in Schedule 1 hereof or at such other respective prices as may from time to time be determined as aforesaid I/we will not during the period mentioned in clause 1 hereof in or on the premises . . ., now occupied by me/us or at any place within a distance of five miles from the said premises manu- facture sell serve supply or vend any ice cream other than ice cream manufac- tured or supplied by you. . . .", "14. In the event of your discontinuing the manufacture of any of the goods other than bulk ice cream . . . then upon your giving to me/us notice in writing of such discontinuance the goods mentioned in such notice shall be deemed to be eliminated from Schedules 1 and2 . . . and you shall not thereafter be bound hereunder to continue
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