Court of Appeal finds innocent party could not affirm contract following repudiatory breach where defaulting party unable (not just unwilling) to perform

The Court of Appeal has upheld a decision that a party was not entitled to keep a contract alive for the purpose of claiming ongoing liquidated damages for delayed performance following its counterparty’s repudiatory breach: MSC Mediterranean Shipping Company S.A. v Cottonex Anstalt [2016] EWCA Civ 789. The Court of Appeal did not however base … Read more

Supreme Court decision highlights importance of contract terms in protecting principal from agent’s insolvency

The Supreme Court has held that a principal was entitled to recover payments collected by its agent on its behalf following the agent’s insolvency: Bailey and another (Respondents) v Angove’s PTY Limited (Appellant) [2016] UKSC 47. The Supreme Court dismissed the principal’s argument that the payments were held on a constructive trust, but found that … Read more