The appellant challenged a trial judgment awarding damages for breach of contract arising from a commercial distribution relationship involving photographic products and an export price policy aimed at curtailing transhipping.
On appeal, the appellant restricted its arguments to restraint of trade, penalty, and damages, while the respondent advanced a cross-appeal on damages scope.
The court held that even assuming the policy was a restraint of trade, it was reasonable as between the parties and not contrary to the public interest, including the Competition Act.
The court further held the policy was not a penalty clause because it applied absent any breach, and found no error in the trial judge's assessment of notice and damages.
Both the appeal and cross-appeal were dismissed with costs.