Fonny Januar Pty Limited and anor v Oey and ors [2007] NSWIRComm 217

Fonny Januar Pty Limited and anor v Oey and ors [2007] NSWIRComm 217

The franchise agreement came within s 106 because its terms and surrounding circumstances required FJ Pty Ltd, through its principal Mr Saputra, to operate and personally manage the franchised business. The agreement was unfair because misrepresentations and failures by Charis meant that the franchisee acquired something significantly different and less valuable than contemplated, and the franchisor's failures in implementation made it extremely difficult for the applicants to operate the business successfully. The appropriate consequence was to declare the franchise agreement wholly void from commencement and order Charis and Mr Oey jointly and severally to compensate FJ Pty Ltd for...

Jurisdiction
Australia
Judgment Date
28 August 2007
Procedural Posture
Application Under S 106 of the Industrial Relations Act 1996 Concerning an Allegedly Unfair Franchise Agreement / Ex Parte Hearing and Judgment
Outcome
The franchise agreement was declared wholly void from its commencement, and compensation, interest and costs were ordered against Charis International Pty Ltd and Peter Henry Oey jointly and severally in favour of Fonny Januar Pty Ltd.
Legal Topics
['industrial Relations Act 1996 S 106' 'unfair Franchise Agreement' 'contract Whereby a Person Performs Work in an Industry' 'misrepresentation' 'avoidance of Contract From Inception' 'monetary Compensation']
['industrial Law' 'unfair Contracts' 'franchise Law'] ['industrial Relations Act 1996 S 106' 'unfair Franchise Agreement' 'contract Whereby a Person Performs Work in an Industry' 'misrepresentation' 'avoidance of Contract From Inception' 'monetary Compensation']

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Procedural Posture

Application Under S 106 of the Industrial Relations Act 1996 Concerning an Allegedly Unfair Franchise Agreement / Ex Parte Hearing and Judgment

Legal Issues

  1. 1 ['Whether the franchise agreement was a contract whereby a person performs work in any industry within s 106(1) of the Industrial Relations Act 1996.' 'Whether the franchise agreement was unfair for the purposes of s 106.' 'What monetary compensation was just in the circumstances under s 106(5).' 'Whether Peter Henry Oey and the OCorp companies should be liable for compensation in addition to Charis International Pty Limited.']

Ratio Decidendi

The franchise agreement came within s 106 because its terms and surrounding circumstances required FJ Pty Ltd, through its principal Mr Saputra, to operate and personally manage the franchised business. The agreement was unfair because misrepresentations and failures by Charis meant that the franchisee acquired something significantly different and less valuable than contemplated, and the franchisor's failures in implementation made it extremely difficult for the applicants to operate the business successfully. The appropriate consequence was to declare the franchise agreement wholly void from commencement and order Charis and Mr Oey jointly and severally to compensate FJ Pty Ltd for...

Court Disposition

The franchise agreement was declared wholly void from its commencement, and compensation, interest and costs were ordered against Charis International Pty Ltd and Peter Henry Oey jointly and severally in favour of Fonny Januar Pty Ltd.

Orders

  • ['The franchise agreement made 25 July 2003 between Charis International Pty Ltd and Fonny Januar Pty Ltd is declared wholly void from its commencement.' 'Charis International Pty Ltd and Peter Henry Oey are jointly and severally ordered to pay to Fonny Januar Pty Ltd the sum of $568,371.03 which comprises...