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Wednesday, 4 July 1906
Page: 1039


That the words " adjudged to have been " be inserted after the word " contract," line 19.

Another reason has occurred to mesince I spoke previously. This clause is intended to deal with corporations that enter into contracts in restraint of trade, and the maximum penalty is fixed at£500. No imprisonment is provided for. Therefore, it would be open for a corporation to make a contract involving thousands of pounds, and in the event of the market proving to be unfavorable to their operations, to risk the £500 fine and decline to carry out their undertaking. All they would have to do in order , to escapetheir responsibilities would be to show that their contract was made in restraint of trade.

Mr Isaacs - They would have to show that the contract was made with intent to restrain trade to the detriment of the public.

Mr BRUCE SMITH (PARKES, NEW SOUTH WALES) - There is nothing to prevent a contractor from stating that he intended to act in restraint of trade. That would be a psychological question, and no one would controvert his statement. If we are not careful, we shall open the door to unprincipled traders, and enable them to escape 'from their responsibilities by raising another defence for breach of contract.

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