Contract – Illegality - Statute not complied with - Appellant franchisor contravened cl 11(1) of Franchising Code of Conduct ("Code") in entering into franchise agreement with respondent franchisee - Section 51AD of Trade Practices Act 1974 (Cth) ("TPA") provided that applicable industry codes must not be contravened by corporations in trade or commerce - Court of Appeal of New South Wales held franchise agreement to be unenforceable due to illegality at common law arising from contravention of Code and s 51AD - Whether contravention of Code and s 51AD resulted in illegality and unenforceability of franchise agreement - Whether legislative purpose of Pt IVB of TPA could be fulfilled without franchise agreement being unenforceable in light of remedies available in Pt VI for contravention of s 51AD.
Words and phrases – "code of conduct", "franchise agreement", "illegality".
Trade Practices Act 1974 (Cth) – s 51AD, Pt IVB.
Trade Practices (Industry Codes – Franchising) Regulations 1998 (Cth), Sched, cl 11.
Judgment date
Case number
S139/2008
Before
Gummow ACJ, Kirby, Hayne, Crennan, Kiefel JJ
Catchwords