Contract: Failing foundations – the legal approach to contractual ambiguity

Jenny Salmon reports on MT Højgaard A/S v E.ON and the lessons to be learned ‘Any warranty as to the length of operational life should have been expressly set out in the contract… and not buried in the technical requirements.’Contracts are the foundation-stone for the legal rights and responsibilities of the parties to any construction …
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Contract: Beyond reason

Jonathan Elvey and Despina Plomaritu consider the recent decision in Braganza ‘In private contracts, as in public matters, both limbs of Wednesbury should be looked at in assessing the reasonableness of a decision. And on that basis (said the three majority judges), BP had acted unreasonably.’ Contracts often give you free rein to take a …
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Contract: Take the money and don’t run

David Sawtell considers how far good faith can apply to repudiatory breach ‘If the innocent party has no other reason to affirm the contract than to maximise its damages, the court might scrutinise its claim.’If a party is in serious breach of a contract, the so-called ‘innocent’ party needs to know whether or not it …
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Shergill & ors v Khaira & ors [2014] UKSC 33

Wills & Trusts Law Reports | December 2014 #145

The case concerned Gurdwaras (Sikh temples) which were established under the discipline and headship of His Holiness Brahamgiani, revered 108 Sant Maharaj Baba Gian Singh Ji, the religious head of the abode of saints at Nirmal Kutia in the Indian village of Johal (the First Holy Saint). Responsibility for the management of the Gurdwaras was given by the First Holy Saint to various individuals (some described as trustees), with the First Holy Saint having the authority to change any trustee, management member and the whole management system at any time. Numerous documents relating to the ...

Contract: Show me the molar

Gregg Rowan and Daniel Woods consider a recent case on repudiatory breach ‘Commercial parties may wish to seek an express right to terminate where there is a delay in performance of particular obligations. Where there is no express right, parties should always consider carefully before seeking to terminate on grounds of delay.’In a recent decision, …
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Contract: Slip of the tongue

Andrew Craig summarises a recent case on misrepresentation ‘If a statement has continuing effect, the person who makes it has a continuing responsibility for its accuracy.’ Contractual negotiations are always to be conducted and recorded with the utmost care, not least in the light of Cramaso LLP v Ogilvie-Grant, Earl of Seafield [2014], which establishes …
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Contract: Caught in the net

Mark Lewis assesses a decision addressing net contribution clauses and limitation of liability ‘The facts that the NCC was openly and fairly shown to the Wests and that the parties were of broadly equal bargaining power were factors in favour of a finding that the inclusion of the NCC satisfied the requirement of good faith.’ …
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Contract: The root of the problem

David Sawtell reviews the law of repudiation When determining whether a breach of an innominate term has “gone to the root” of a contract, the courts have adopted a more easily applied list of factors to be consideredWhere a defaulting party is in repudiatory breach of an agreement, the injured party is not only entitled …
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Contract: Trading places

Chris Charlesworth discovers what happens when one of the parties in a trading relationship decides to move on. Is the supplier in that situation entitled to compensation? ‘You will have no right to any period of notice unless you have a contract and trying to establish an agreement by conduct is difficult.’It is often said …
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Contract: Hands off!

Ian Tucker and Charles Crowne discuss a recent ruling on retention of title ‘Unfortunately, the law around retention of title clauses is rather unclear. If goods are on-sold before title passes to the initial buyer, then it may not be possible for the original seller to claim the price.’ Retention of title clauses are widely …
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