Supreme Court clarifies test for implying terms into a contract

In a judgment handed down yesterday morning, the Supreme Court has clarified the law on when the court can imply a term that the parties have not expressly included in their contract, endorsing the traditional approach that the term either must be so obvious as to go without saying or must be necessary to give business … Read more

Article published on the new rule on penalties under English law

Much interest has been generated by the Supreme Court's decision in Cavendish Square Holding BV v Talal El Makdessi; ParkingEye Limited v Beavis [2015] UKSC 67, which introduced a new test for when a contractual provision will be considered penal and therefore unenforceable. David Nitek and Maura McIntosh have published an article which considers the new test and its implications for commercial parties: "The … 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 … Read more

Supreme Court rewrites English law rule on penalties

In a judgment handed down this morning, the Supreme Court has in effect re-written the rule on penalties, saying that the underlying rationale of the rule in English law has been misunderstood and that as a result the rule has been applied in many situations where it is both unnecessary and unjust: Cavendish Square Holding BV … Read more

Contractual time bar did not prevent third party contribution claims

The High Court has held that a contractor could be joined to proceedings as a third party (or Part 20 defendant) so that the main defendants could pursue a contribution claim against the contractor, even though the claimant's direct claims against the contractor were subject to a contractual time bar: Bloomberg LP v Sandberg (a … Read more

High Court finds no continuing contractual duty to correct investment advice

A recent decision of the High Court provides comfort to financial institutions and other professionals facing claims based on an alleged continuing contractual duty to correct earlier advice: Worthing and Another v Lloyds Bank plc [2015] EWHC 2836 (QB). Where a claim is brought more than six years after an alleged breach of contract, and … 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