Marks Brothers v Park [1914] HCA 22

REPORTS OF CASES

DETERMINED IN THE

HIGH COURT OF AUSTRALIA

1914.

[HIGH COURT OF AUSTRALIA.]

MARKS BROTHERS : é . 4 . APPELLANTS ; DEFENDANTS, AND PARK : : 3 - ' é ' . RESPONDENT. PLAINTIFF,

ON APPEAL FROM THE SUPREME COURT OF VICTORIA.

Contract—Construction—Contract for services.

An oral agreement was entered into between the plaintiff, who was an H. C. or A. engineer, and the defendants, who were manufacturers of agricultural imple- 1914. ments, that in consideration of the plaintiff continuing in the employment of | ~~ the defendants and endeavouring to improve a certain patented vertical chaff MetBourne, and root cutter the defendants would give the plaintiff 10 per cent. of the March 27,30, profits to be obtained from that implement and any improvements thereof. 4 p7i7 iL G Subsequently a written agreement was entered into between the same parties pales by which the defendants agreed that the plaintiff "for special services Grifith 0.1, rendered in perfecting and successfully demonstrating our patent vertical tsaacs and chaff and root cutter and any other machinery shall be entitled to receive °*"*" Puay 44 10 per cent. of our profits from manufacture." 'The plaintiff "to remain in

you. XVII. 1

H. C. or A. 1914, Yw

Mars Bros.

v. Parr.

April 6.

—

HIGH COURT (914.

per week and the term to be extended if This agreement stands good on the If the patent rights are sold to any

our employ for five years at £5 still in business for another five years. same terms if taken to New Zealand. firm, capitalist or capitalists, or formed into a company or the like" the plaintiff " to receive 10 per cent. of the sale."

Held, upon the evidence, (1) that the oral contract related only to the manufacture and sale in the Commonwealth of the vertical chaff and root cutter and any improvements thereof ; (2) that the written contract was a single contract—and not two separate and independent contracts, one being a contract for the services of the plaintiff for five years renewable for a further five years, and the other a contract that the plaintiff should be paid 10 per cent. of the profits of manufacture during that term and 10 per cent. of the proceeds of the patent rights if they were disposed of ; (3) that the words "'our profits from manufacture " in the written contract related only to the business of manufacture and sale by the defendants in the Commonwealth and New Zealand of the vertical chaff and root cutter or any improvements thereof and other machinery and (by Grifith C.J. and Barton and Gavan Duffy JJ.,