Interpreting Inconsistent Contract Terms And Multi –Document Contracts

The issue of how a contract should be construed when it contains inconsistent provisions was recently examined in Leonie's Travel Pty Ltd v International Air Transport Association [2009] FCA 280. The case also considered the way matters contained in extrinsic material can be treated as misleading and deceptive conduct under the Trade Practices Act 1974 (the TPA).

FACTS

In these proceedings a group of travel agents challenged the calculation of commissions they were paid. Central to the dispute was whether the agents were entitled to be paid on the assumption that an amount paid by passengers as a fuel surcharge should have been called into account when calculating the payments to the agents.