The question of whether a transaction is made in the ordinary course of business (and is therefore not voidable) is a factual assessment of all the circumstances of each case.

When making this assessment recently, the High Court accepted in Temperzone Ltd v Farrelly that 'pay when paid' arrangements reflected commercial reality and were common in the building industry and its related trades. It declined to set aside various transactions even though under the contractual term, the debtor company was very slow in paying its account.

This is a general summary only and should not be taken as a substitute for specific advice.

For further information please contact Dean Knight:
dean.knight@phillipsfox.com

Web site: Phillips Fox