Smart Distribution Services Pty Ltd v General Wholesale Pty Ltd (No 2) [2010] NSWDC 83

Smart Distribution Services Pty Ltd v General Wholesale Pty Ltd (No 2) [2010] NSWDC 83

Returns are not to be taken into account in determining commission as the Agreement provides for commission to be calculated on the gross profit from wholesale sales at the point of purchase order with no mention of deducting returns, and the defendant bore the risk of returns. Commission is calculated as sale price less rebates less cost price, as per clause 13.

Parties
Plaintiff: Smart Distribution Services Pty Ltd; Defendant: General Wholesale Pty Ltd
Jurisdiction
Australia
Judgment Date
19 May 2010
Procedural Posture
Civil / Post Trial Judgment on Calculation of Commission, Interest, and Costs
Outcome
Judgment for the plaintiff
Legal Topics
Construction of Contract Terms, Commission Entitlement, Interest Award, Costs
Contract Construction of Contract Terms Commission Entitlement Interest Award Costs

Case Brief

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Parties

Smart Distribution Services Pty Ltd

Plaintiff

General Wholesale Pty Ltd

Defendant

Procedural Posture

Civil / Post Trial Judgment on Calculation of Commission, Interest, and Costs

Legal Issues

  1. 1 Whether goods returned are to be taken into account in determining commission payable under the agreement
  2. 2 Whether the plaintiff is entitled to interest

Ratio Decidendi

Returns are not to be taken into account in determining commission as the Agreement provides for commission to be calculated on the gross profit from wholesale sales at the point of purchase order with no mention of deducting returns, and the defendant bore the risk of returns. Commission is calculated as sale price less rebates less cost price, as per clause 13.

Court Disposition

Judgment for the plaintiff

Orders

  • Defendant to pay the plaintiff the sum of $102,530.85
  • Defendant to pay interest at 9.5% from the date the commission became payable to the date of judgment