High Court finds alleged frustration of contract due to COVID-19 pandemic is not sufficiently arguable to grant injunction restraining demand under letter of credit

The High Court has dismissed an application for an injunction to prevent an airline group from making demands under bank-confirmed standby letters of credit (SBLCs), securing aircraft leases granted to the claimant (a budget passenger airline), on the basis that it was not sufficiently arguable that the leases were frustrated due to the effects of … Read more

High Court finds that a claimant’s “awareness” of a representation is an essential prerequisite to a claim for misrepresentation

In a recent decision, the High Court has struck out claims against a defendant bank alleging implied fraudulent misrepresentations in relation to LIBOR, on the basis that the claimants had failed to plead that the alleged representations were actively present in their mind when entering into the products in question and therefore the claim stood … Read more

High Court finds clause imposing harsh consequences for breach of term aimed at protecting IP rights was not an unenforceable penalty

In a recent decision, the High Court has found that a clause in a settlement agreement which was aimed at protecting a business’s IP rights was not penal, despite imposing “undoubtedly extremely harsh” consequences for breach of certain obligations in a settlement agreement. Under the clause, the relevant party would cease to receive any payment … Read more

Getting your just deserts: Remedies for breach of contract

Establishing that a counterparty is in breach of contract is only the first hurdle to obtaining proper redress. It is just as important for the innocent party to show that it has suffered a loss as a result of the breach, and to prove what that loss is, or to establish that it should be … Read more

Drafting contracts – key lessons from 2020

This annual contract law update from our corporate team considers a number of interesting contract law cases from 2020 which highlighted key points for those involved in drafting or managing contracts. The cases chosen deal with formation, variation, interpretation, good faith, force majeure and notice provisions. In each case there is a brief summary of the … Read more

Brexit: key practical implications for disputes and dispute resolution clauses

Despite the UK and EU having finalised a Trade and Cooperation Agreement to govern their trading and security relationship following the end of the Brexit transition period, there remain a number of uncertainties when it comes to commercial dispute resolution in cases involving the UK and the EU. In this post we look at some … Read more

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 where there is no express right to terminate, parties may be entitled to terminate under … Read more

Court of Appeal finds no binding settlement reached, emphasising importance of “subject to contract” label

In a recent decision, the Court of Appeal has overturned a deputy judge’s decision that a binding settlement agreement had been reached in inter-solicitor correspondence despite the use of the “subject to contract” label: Joanne Properties Ltd v Moneything Capital Ltd [2020] EWCA Civ 1541. The decision illustrates that, once parties have started to negotiate … Read more

Court of Appeal construes Farm-Out Agreement and Joint Operating Agreement together as a cohesive whole

The Court of Appeal has dismissed an appeal against a decision interpreting the provisions of a Farm-Out Agreement for the sale of an interest in two oil production licences: Apache North Sea Limited v (1) Euroil Exploration Limited & (2) Edison S.p.A [2020] EWCA Civ 1397. Herbert Smith Freehills LLP represented the successful defendants/respondents, Euroil Exploration Limited … Read more