ORACAL INT. V. INTERNATIONAL PROFESSIONAL TRADERS [1999] NSWSC 753
Supreme Court of New South Wales – 28 July 1999
FACTS
Oracal supplied cordless telephones to Tandy and began negotiations to also supply computers to Tandy. As Oracal did not at the time deal in computers it purchased computers from International Professional Traders (trading as Datcom). Datcom was involved in discussions with both Oracal and Tandy but was not in a contractual relationship with Tandy.
However Datcom and Oracal were at the time negotiating a contract to supply computers to Tandy as a joint venture with profits to be split evenly.
Oracal was very slow at paying Datcom for the supply for computers. Eventually Datcom stopped negotiating with Oracal and began to supply computers directly to Tandy. Oracal issued proceedings against Datcom and sought an injunction to prevent Datcom selling computers to Tandy.
ISSUES
Was Oracal entitled to an injunction to – prevent Datcom breaching fiduciary obligations to Oracal by dealing directly with Tandy; and/or prevent Datcom breaching a duty of confidence owing to Oracal?
FINDING
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