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Overlook v Foxtel - Doyles Arbitration Lawyers

OVERLOOK V FOXTEL [2002] NSWSC 17

Supreme Court of New South Wales – 31 January 2002

FACTS

Overlook Management BV (“Overlook”) entered into a contract with Foxtel Management Pty Limited (“Foxtel”) whereby Foxtel would purchase non-English television program content from Overlook for its pay television system. Foxtel agreed initially that  the price to be charged for Overlooks channels would be $19.95 per month. This price was subsequently reduced to $9.95 which severely impacted on Overlook’s financial return from the contract, unless and until offset by a significant increase in subscriber numbers.

ISSUES

Overlook claimed that Foxtel had breached an implied term that Foxtel would act in good faith that the price would not be varied except by agreement to preserve Overlook’s revenue base. Whether Foxtel had acted in good faith.

FINDINGS

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