A distributor of drinks had a restaurant owner sign an agreement under which he receives quantity discounts where such discounts are granted in advance as a loan to be repaid only if the sale goals are not me. Against the loan the owner signed a debenture. When the distributor tried to collect on the debenture the owner argued, inter alia, that it is a restrictive trade agreement meant to prevent him from selling products of the competitors.
The Court accepted the claim and rejected the argument that this is an illegal restrictive trade agreement. The obligation of the restaurant is to stand up to sales goals and not reaching such goals will result in payment of funds but this is not an exclusivity provision and there is no prohibition on the client standing up to the sales goals while concurrently selling products of competitors.