Liquidated Damages Awarded for Breach of an Exclusivity Obligation under an Exclusive Supply Agreement

Following the acquisition of manufacturing capacity within its group, a client ceased purchasing hearing-aid batteries from its exclusive supplier and instead sourced the products from group companies. This conduct was held to constitute a breach of contract, and the supplier was awarded liquidated damages that were contractually agreed.

Interpretation and scope of a non-competition clause in a share purchase agreement and judicial reduction of an excessive penalty

This Federal Supreme Court decision concerns a dispute arising from the breach of a non-competition clause in a share purchase agreement between two companies. The court confirmed the breach but upheld a reduction of the contractual penalty on the grounds that it was excessive.

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