Anticipated liabilities for damages arising from future defaults on forward sale contracts that have not yet matured are not 'debts' within the solvency test in s 95A of the Corporations Act 2001. The central concept of 'debt' in s 95A requires a liquidated obligation; an obligation for unliquidated damages contingent on future events (such as default, notice, and purchase against the defaulter) does not qualify. This limits the scope of the insolvent trading provisions where a company faces looming but uncrystallised losses on futures contracts.
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