Contract − Construction – Long term gas supply agreement – Sellers obliged to use "reasonable endeavours" to supply supplemental gas – Agreement allowed sellers to take into account all "relevant commercial, economic and operational matters" in determining whether able to supply supplemental gas – Gas explosion at plant operated by third party temporarily reduced supply of gas to market – Sellers refused to supply supplemental gas at price stipulated in agreement during period of reduced supply – Sellers offered to supply equivalent quantities of gas at higher price under separate short term agreements – Whether sellers breached obligation to use "reasonable endeavours" to supply supplemental gas.
Words and phrases – "able", "reasonable endeavours", "relevant commercial, economic and operational matters".
Judgment date
Case number
P47/2013
P48/2013
Before
French CJ, Hayne, Crennan, Kiefel, Gageler JJ
Catchwords