Drafting contracts: Key lessons from 2019

This annual contract law update from our corporate team considers a number of interesting contract law cases from 2019 which highlighted key points for those involved in drafting or managing contracts. The cases chosen deal with formation and certainty of terms, interpretation and implied terms, good faith, severance, loss and remedies, penalties, force majeure, notice provisions, … Read more

Endeavours obligations: How hard do you have to try?

Obligations to endeavour to achieve some object are commonly agreed in commercial contracts where the relevant party is not willing to take on an absolute obligation to that effect. Typical clauses may require the use of “best endeavours”, “reasonable endeavours” or “all reasonable endeavours”, but it is not always clear what these terms require in practice. In this fifth … Read more

Joint Operating Agreement arguably a “relational contract” but Commercial Court declines to imply duty of good faith or Braganza duty

In a recent decision, the Commercial Court found that an express and (on its face) unqualified right to discharge the operator in a Joint Operating Agreement (JOA) was not subject to any implied term of good faith, or that the right would not be exercised capriciously, arbitrarily or unreasonably: TAQA Bratani Limited and Others v RockRose … Read more

Loss of profits awarded for breach of collateral warranty which induced claimant to arrange purchase of goods from defendant on hire purchase terms

In a recent decision, the High Court has upheld a claim for breach of collateral warranty where the claimant was induced to arrange the purchase of the defendant’s laser hair removal devices for use in its business as a result of the defendant’s statements about the quality and anticipated performance of the devices. The claimant … Read more

High Court finds no binding contract for commission for introduction of valuable Formula One sponsorship deal but awards quantum meruit

The High Court has rejected a company’s claim for commission for the introduction of a sports sponsorship opportunity on the basis that there was no binding contract between the parties. However, the company’s claim for unjust enrichment in respect of services provided in facilitating the sponsorship deal was allowed: AMP Advisory & Management Partners AG … Read more

Pre-contractual statements: When can they come back to bite you?

Parties may say all sorts of things when negotiating a contract. Where sophisticated commercial parties are involved, most pre-contractual statements will, no doubt, be both carefully considered and accurate. But as we all know, things can go wrong. Where a pre-contractual statement turns out to be false, the implications can be serious. The counterparty may have a right to unwind the … Read more