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United Kingdom Contract Disputes Contract Terms

BCLP

Interpreting Termination Clauses: a Recent Example From the Court of Appeal

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In this Insight, first published in PLC, Shy Jackson considers the Court of Appeal's decision in Providence Building Services Ltd v Hexagon Housing Association Ltd [2024] EWCA Civ 962 that a contractor was entitled to...more

Vinson & Elkins LLP

"Supreme Court Rules Most Collateral Warranties Are Not Construction Contracts" in Abbey Healthcare v Simply [2024] UKSC 23

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On 9 July 2024, the Supreme Court unanimously held that collateral warranties deriving from or reflective of the primary building contract, and merely promising continued construction, are not generally considered agreements...more

BCLP

Abbey Healthcare - A Prompt for Considering Contractual Adjudication in Collateral Warranties?

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An article considering the Supreme Court’s decision in Abbey Healthcare, which decided that a typically worded collateral warranty is not a construction contract for the purposes of the Housing Grants, Construction and...more

Mayer Brown

Conditions precedent: own wrongdoing cannot be used to escape debt

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Summary - In King Crude Carriers SA & Ors v Ridgebury November LLC & Ors, handed down last month, the English Court of Appeal considered the principle in Mackay v Dick & Stevenson....more

BCLP

Conditions Precedent and Time Bars, Getting Around Them

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When a party fails to comply with a condition precedent, especially if such a provision includes a time limit for the fulfilment of the obligation, it will often advance various arguments to avoid the consequences of...more

Mayer Brown

Do reasonable endeavours require accepting non-contractual performance to reach a reasonable outcome?

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In the UK Supreme Court's judgment in RTI Ltd v MUR Shipping BV [2024] UKSC 18, which was handed down last week, it considered what obligations the words “reasonable endeavours” placed on a party, in the context of a force...more

BCLP

Case Flags Risk of Unclear ADR Procedure

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While main contract suites offer standard dispute resolution clauses, these are often amended in practice. A recent case gives a warning of what happens when such bespoke provisions are not clear. Originally published by...more

Cooley LLP

Commercial Court Refuses to Set Aside an Arbitration Award on Consumer Protection Grounds

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In Eternity Sky Investments Ltd v. Zhang,[1] the Commercial Court refused an application to set aside an enforcement order in respect of an award made in a Hong Kong-seated arbitration on the grounds that enforcement would be...more

BCLP

Disputes in Focus: Quick Q&A on Contractual Interpretation

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Following a series of three Supreme Court judgments between 2011 and 2017, the general approach to interpretation of contracts under English law has been fairly clear....more

BCLP

Risk Mitigation in a Volatile Price Market

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The construction industry will continue to face rising material prices, volatile markets and inflation. Disputes go hand in hand with rising prices as projects become much more difficult to complete on time and within budget....more

BCLP

Can liquidated damages clauses set general cap?

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A pair of cases in the past two years have come to opposite conclusions about whether general damages can be capped by contract provisions for liquidated damages. Liquidated damages clauses are a common feature of...more

BCLP

Drafters beware! Court of Appeal on the significance of express terms

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Every so often the Court will reaffirm the primacy of express terms while re-stating the rule that implied terms can only be relied on to the extent they are (i) so obvious as to go without saying, or (ii) necessary to give...more

Latham & Watkins LLP

Court of Appeal Rules on Enforceability of Mandatory ADR Clauses

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A recent decision reminds parties about the need to draft dispute resolution clauses that are tailored to the parties’ agreement. The Court of Appeal recently ruled that an alternative dispute resolution (ADR) clause in...more

A&O Shearman

Disputing Alternative Dispute Resolution?

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In Kajima v Children’s Ark, the Court of Appeal agreed that uncertain Alternative Dispute Resolution provisions that were a condition precedent to commencing litigation were unenforceable....more

Cooley LLP

Contractual Dispute Resolution Procedure as a Condition Precedent: Clarity is Key

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Contractual dispute resolution mechanisms intended to avoid or narrow formal disputes through early dialogue are popular, particularly in long-term contracts....more

A&O Shearman

Sign your engagement letter. It’s not up for negotiation

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The High Court has provided a stark reminder of the risks that arise if parties, despite extensive negotiations, fail to sign their agreements, in this case an engagement letter....more

Latham & Watkins LLP

Complex Commercial Litigation Law Review - Fifth Edition - England & Wales

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The courts of England are some of the most established fora for dealing with complex commercial litigation. The Civil Procedure Rules (CPR) that apply to English civil litigation, which govern every aspect of cases from...more

Cooley LLP

Time to terminate? How to mitigate risk

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The coronavirus pandemic and global economic and political uncertainties mean that more businesses than ever are tied into unprofitable contracts or are required to purchase unwanted goods and services. Alternatively, they...more

A&O Shearman

Unsanctioned Payments: Overcoming Force Majeure Through Non-Contractual Performance

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In what some may regard as a surprising outcome, the English Court of Appeal has held that a force majeure clause was not triggered because the affected party could have accepted performance that was not in accordance with...more

A&O Shearman

Keeping the Faith: English Court of Appeal Considers Contractual Good Faith Provision in Shareholder Agreement

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The English law concerning contractual duties of good faith (express and implied) has received considerable judicial attention in recent years. It will therefore be of interest to those who use English law contracts,...more

A&O Shearman

Straddling the fence - contractual interpretation in the abstract

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Life expectancy obligations in a construction project applied only to the newbuilds, not the refurbished properties under that project, according to the High Court. This case was not one where a breach was being alleged,...more

Cooley LLP

Irremediable Mistakes

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It is common for contracts to contain termination provisions that only allow for termination for a remediable breach if notice of the breach is given and the breaching party is allowed time to remedy it. For a party...more

A&O Shearman

Implied novation not prevented by termination provision

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In Gama Aviation the High Court found that a clause which prevented unilateral termination of an agreement except by written notice was not also a bar to termination of the agreement by way of informal novation. ...more

Jones Day

Conflict in Ukraine: Liability for Non-Performance Under English Law

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The ongoing conflict in Ukraine, and the severe sanctions imposed by governments globally in response to Russia's aggression, are having extreme effects on parties' legal obligations, and are drastically altering the...more

BCLP

High Court considers repudiatory breach and wrongful termination in an aircraft lease contract dispute

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The High Court recently considered the termination of an aircraft lease to purchase contract between OCA and Novans (an aircraft broking and consultancy company). In finding for the Claimant, the judgment considers the thorny...more

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