Commission contracts may be split
20 Commission contracts may be split
The object of this section is to enable a Commission contract to be split into 2 separate contracts so that one of those contracts can be transferred to the nominated company under this Division.
For the purposes of this section, a Commission contract is a contract between the Commission and another person (the supplier) for the supply to the Commission of goods or services.
The Minister may, by writing, declare that:
a specified Commission contract terminates at a specified time without giving the supplier any entitlement to compensation or damages (other than an entitlement (if any) under section 46); and
the Commission is taken to have entered into a contract (the Medibank Private contract) with the supplier at that time for the supply of some of those goods or services in the terms set out in the declaration; and
the Commission is taken to have entered into a contract (the residual contract) with the supplier at that time for the supply of some of those goods or services in the terms set out in the declaration.
A declaration under subsection (3) has effect accordingly.
A copy of a declaration under subsection (3) is to be published in the Gazette within 14 days after the making of the declaration.
A copy of a declaration under subsection (3) is to be given to the supplier as soon as practicable after the making of the declaration.
If a declaration is made under subsection (3) in relation to a Commission contract:
the sum of:
the consideration that is to be paid to the supplier under the Medibank Private contract; and
the consideration that is to be paid to the supplier under the residual contract;
must equal the consideration that would have been paid to the supplier under the Commission contract if the declaration had not been made; and
the aggregate of:
the obligations imposed on the supplier under the Medibank Private contract; and
the obligations imposed on the supplier under the residual contract;
must not be more onerous than the obligations that would have been imposed on the supplier under the Commission contract if the declaration had not been made.
In this section:
goods has the same meaning as in the Competition and Consumer Act 2010.
person includes a partnership.
services has the same meaning as in the Competition and Consumer Act 2010.
supply has the same meaning as in the Competition and Consumer Act 2010.
To avoid doubt, a reference in this section to services includes a reference to rights arising under a computer software licence.
Subsection (9) is to be disregarded in interpreting a law of the Commonwealth (other than this section).
The statute text is free to read above. View Pro plans to unlock the case-law research tools for each provision.