DUTIES ACT 2001 - SECT 502 Consideration based on contingency

DUTIES ACT 2001 - SECT 502

502 Consideration based on contingency

(1) Subsection (2) applies for determining the consideration payable under an instrument or transaction if the consideration payable—

(a) may be increased or decreased depending on a particular thing happening or not happening; or

(b) may or may not actually become payable depending on a particular thing happening or not happening; or

(c) is agreed to be a minimum amount, whether or not depending on a particular thing happening or not happening; or

(d) is agreed to be a maximum amount, whether or not depending on a particular thing happening or not happening; or

(e) is agreed to be either a minimum or maximum amount, whether or not depending on a particular thing happening or not happening.

(2) Regardless of whether the thing happens or does not happen, the consideration is—

(a) if subsection (1) (a) or (b) applies—the highest consideration payable under the instrument or transaction; or

(b) if subsection (1) (c) applies—the minimum amount; or

(c) if subsection (1) (d) or (e) applies—the maximum amount.