9Transitional provisions if business sold

9 Transitional provisions if business sold

(1)  If the business of a prescribed Government Business Enterprise is sold under section 7(1) , on and after the business sale date the following provisions apply except as otherwise agreed, in writing, by the Treasurer and the purchaser:

(a) a reference in an existing document to the prescribed Government Business Enterprise or the Board of the prescribed Government Business Enterprise in relation to the business that became the purchased business is taken, where appropriate, to be or to include a reference to the purchaser;

(b) legal proceedings that could have been instituted by or against the prescribed Government Business Enterprise immediately before the business sale date and that relate to the business that became the purchased business may be instituted by or against the purchaser;

(c) legal proceedings instituted by or against the prescribed Government Business Enterprise that relate to the business that became the purchased business and are pending immediately before the business sale date may be continued by or against the purchaser;

(d) a document served on the prescribed Government Business Enterprise in respect of legal proceedings referred to in paragraph (c) is taken to have been served on the purchaser;

(e) a judgment or order of a court obtained by or against the prescribed Government Business Enterprise in relation to the business that became the purchased business may be enforced by or against the purchaser but may not be enforced by or against the prescribed Government Business Enterprise;

(f) a contract made by the prescribed Government Business Enterprise relating to the business that became the purchased business but not performed or discharged before the business sale date is taken to have been made by the purchaser.

(2)  A person who is a party to a contract made by a prescribed Government Business Enterprise is not entitled to –

(a) terminate that contract; or

(b) claim that there has been a breach or default of the contract; or

(c) claim any remedy –

by reason only of the sale under section 7(1) of a business to which that contract, or part of that contract, relates or which arises from that contract or part.