Tribunal Approves Contract Proviso
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THE Appeal Tribunal has overruled a decision of the South Wales Licensing Authority, who refused to grant a contract-A licence to Mr. A. H. Butt because Penderyn Limestone Quarries, Ltd., included in the contract a clause providing that payment of the guaranteed minimum monthly rate of £80 should tie subject to delays caused by strikes, lock-outs, breakdowns or other circumstances beyond the control of the company."
In its written decision issued this week, the Tribunal said that the clause did not afford the Licensing Authority any reasonable ground for assuming that the Bedford vehicle concerned would not beused exclusively for the purposes of the contract. It was reasonable and was in everyday commercial use.
The terms of the contract were not in conflict with the principles laid down in the Tribunal's decision in the Sergeant appeal. Then it was held that a contract which provided even for seasonal or intermittent employment would constitute a satisfactory compliance with Section 7 (1) of the Road and Rail Traffic Act, so long as the terms of payment were sufficiently remunerative to obviate any temptation to the operator to seek work outside. The Tribunal regarded £80 a month as an adequate sum.