An arrangement involving the termination of a licence agreement and set-off of the value of the licensee's business against its debt to the licensor can constitute a 'transaction' for the purposes of the unfair preference provisions in s 588FA of the Corporations Law, even where the licensee did not sign the relevant documents but acquiesced in and cooperated with the arrangement. The benefit to the creditor is assessed by reference to the arrangement as a whole, not by asking whether the business had any value after termination.
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