Byline: Hendrik Wise

Recent data published by Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), indicates that the number of corporate insolvencies in Australia continues to rise. In an industry where the margins are notoriously tight, transport and logistics operators can find themselves in parlous financial circumstances very quickly if one of their customers suffers financial stress.

Contracts are the foundation upon which legal rights, obligations and expectations are built. The essential function of a contract is to create a binding legal relationship between contracting parties. In theory, they are designed to clearly define the mutual understanding and commitments made by the contracting parties. However, in practice, this clarity is not always reflected in the final contract terms. This can lead to unnecessary disputes, often resulting in protracted and costly litigation.