Contract

High Court finds option agreement void for uncertainty where it left delivery dates to be agreed

The High Court has found that an option agreement for the purchase of oil tankers was void for uncertainty where it provided that the delivery date for the vessels would be "mutually agreed upon" when the relevant options were exercised: … Continue reading

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Supreme Court on contractual interpretation: striking a balance between the language used and the commercial implications

In a judgment handed down yesterday (29 March), the Supreme Court has unanimously dismissed an appeal relating to the construction of an indemnity clause: Wood (Respondent) v Capita Insurance Services Limited (Appellant) [2017] UKSC 24. The Supreme Court emphasised that it did … Continue reading

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High Court finds clause allowing landlord to terminate side letter and insist on payment of higher rent in lease falls foul of rule on penalties

In a recent decision, the High Court has held that a clause in a side letter, which allowed a landlord to terminate the side letter and insist on payment of the higher rent set out in the lease, was a penalty and … Continue reading

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Commercial Court finds “torpedo” action ineffective where parties agreed asymmetric jurisdiction clause

The Commercial Court has held that an asymmetric jurisdiction clause is an exclusive jurisdiction clause for the purposes of the recast Brussels Regulation. The English court was therefore entitled to continue with its proceedings where it was the chosen court … Continue reading

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Court of Appeal confirms subsequent communications can be relevant to determining whether a contract has been concluded

The Court of Appeal has held that the High Court was wrong to find that a contract had arguably been concluded during a telephone call following a "subject to contract" offer letter, when this was inconsistent with the parties' subsequent … Continue reading

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Court of Appeal considers meaning of requirement to notify insurers “as soon as possible” after event likely to give rise to a claim

The Court of Appeal has confirmed that an insurer could not rely on a condition precedent relating to notification to avoid liability under a public and product liability policy: Zurich Insurance PLC v Maccaferri Limited [2016] EWCA Civ 1302. At first instance, … Continue reading

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Terminating your contract: When can you call it quits?

Parties to commercial contracts may wish to exit their contractual arrangements for all sorts of reasons. In many cases, they will have included in their contract a right to terminate in particular circumstances, and a process for doing so. Even … Continue reading

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Turkish Court of Appeal takes restrictive view of English jurisdiction clause

A decision of the Turkish Court of Appeal has important implications for parties to agreements with a Turkish element (such as a Turkish counterparty or place of performance in Turkey) who wish their disputes to be litigated in the English courts … Continue reading

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High Court considers requirements for demand under a guarantee

In a recent decision, the High Court enforced a demand guarantee against a guarantor who claimed that sums due had not been demanded in accordance with the guarantee's terms, including because an incorrect delivery method had been used: MUR Joint … Continue reading

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Court of Appeal finds party in repudiatory breach of contract due to repeated late payments

The Court of Appeal has recently found that a shipowner was entitled to terminate for repudiatory breach where the hirer was in persistent breach of an obligation for the punctual payment of hire: Spar Shipping AS v Grand China Logistics … Continue reading

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