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

Court of Appeal finds entire agreement clause did not preclude terms of superseded contract being admissible to explain meaning of unconventional term

The Court of Appeal has held that the parties agreed a binding variation to incorporate additional services (Intermediate Minor Oral Surgery, or IMOS, services) into a standard form contract for the provision of dental services, so that an earlier contract for the provision of the IMOS services was superseded. That meant that the agreement for … Read more

What does your contract mean? How the courts interpret contracts

All too often, a term might seem perfectly clear to the parties when the contract is agreed, but a dispute later arises as to how it is meant to apply in the circumstances that have come about. If the parties cannot resolve the issue, the court may be called on to interpret the contract. Where … Read more

Court of Appeal finds defendant gave good consideration for varied settlement in agreeing to give up defence that was later found to be without merit

The Court of Appeal has recently upheld a first instance decision that there was a binding agreement to vary a settlement agreement: Simantob v Shavleyan [2019] EWCA Civ 1105. The claimant argued that there was a lack of consideration for the variation, as the defence which the defendant had agreed not to pursue was without merit … Read more