Legal Question in Business Law in Australia

law of contract

Due to fluctuations in the economy, we didnot go into an agreement with my friend company. when it looked stable we finally agreed on to sell items to each other for a certain amount. just when we were going to begin, the price for my good sky rocketed. is the contract still legally binding?


Asked on 5/27/07, 10:32 pm

1 Answer from Attorneys
Fatahillah Hoed Lubis Ganie Surowidjojo

Re: law of contract

Dear...

If the agreement created in the unstable business environment, the parties should be aware to up and down of the economic situation, unless the agreement clearly stipulated that for example the agreement will automatically nulified when the economic condition become unstable indicated by...., this could be clasified as force majeure clause that will become the excuse not to execute the agreeement, thanks

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Answered on 5/27/07, 11:29 pm


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