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Jumping the gun and terminating for late performance before the contractual procedure allows leads to wrongdoer becoming the victim – Gesner v Bombardier, Court of Appeal

12 October 2011 | Simon Weinberg

Gesner contracted to buy an aeroplane from Bombardier. The contract provided that Gesner could invoke the termination clause if there was a 90 day period of non-excusable delay in delivery. The plane was...

Tags on this discussion: agreement agreements breach breach of contract commercial commercial agreement commercial agreements Commercial contract commercial contracts commercial law contract contract termination contracts Court of Appeal default fundamental breach High Court material material breach repudiatory breach serious breach terminate termination

Agent can act for competing principals under Commercial Agents Regulations – Rossetti Marketing v Diamond Sofa, High Court

11 October 2011 | Paul Gershlick

S had been appointed as Diamond’s agent for the sale of Diamond’s leather upholstery products in the UK and Ireland. Four years later, S transferred its business to Rossetti. Shortly after the transfer,...

Tags on this discussion: agency agency agreement agency agreements agency contract agency contracts agreement agreements commercial commercial agent Commercial Agents (Council Directive) Regulations Commercial Agents Directive Commercial Agents Regulations commercial agreement commercial agreements Commercial contract commercial contracts commercial law compensation contract contract termination contracts Directive EU EU law Europe European Union European Union law indemnity principal term terminate termination

NetTV decision over liability for deliberate repudiatory breach considered by High Court together with right of first refusal, whether rights are waived while negotiating following material breach and very narrow interpretation of limit on liability clause – AstraZeneca v Albemarle International, High Court

20 July 2011 | Paul Gershlick

When drafting a contract, parties often attempt to exclude or limit their liability by inserting a particular clause into the contract. Such a clause is known as an exclusion clause. Certain forms of exclusion...

Tags on this discussion: agreement agreements breach breach of agreement breach of contract clause commercial commercial agreement commercial agreements Commercial contract commercial contracts commercial law consequential loss contra proferentem contract contract breach contract termination contracts damages direct loss exclusion clause exclusion of liability first refual fundamental breach heads of loss High Court indirect loss liability limitation limitation on liability loss loss of profits losses material breach NetTV pharma pharmaceutical remedies remedy repudiatory breach right of first refusal serious breach supply agreement supply agreements supply contract supply contracts terminate termination test for repudiatory breach waiver

Minimum 12- to 36 month gym memberships were unfair – OFT v Ashbourne Management Services, High Court

27 June 2011 | Paul Gershlick

The Office of Fair Trading has successfully obtained an injunction against someone who recruited new members for their gym and health club clients. In the standard agreements that X advised their clients...

Tags on this discussion: agreement agreements B2C business business-to-consumer businesses cancellation commercial commercial law consumer consumer agreement consumer agreements consumer contract consumer contracts consumer detriment consumer law consumer laws consumer protection Consumer Protection from Unfair Trading Consumer Protection from Unfair Trading Regulations consumers contract termination CPUTR fair fairness High Court Office of Fair Trading OFT OFT investigation right to cancel term termination Terms & conditions unenforceable unfair Unfair Commercial Practices Unfair Commercial Practices Directive unfair contract terms unfair contract trading Unfair Terms Directive Unfair Terms in Consumer Contracts Directive Unfair Terms in Consumer Contracts Regulations UTCCR void

Changes to the tax treatment of post-termination payments

22 March 2011 | Michael Delaney

The Government has published new amending regulations which, from 6 April 2011, will change the PAYE treatment of payments made to ex-employees after the employer has issued a P45. Background The...

Tags on this discussion: compromise agreements contract employee employer HM Revenue & Customs HMRC Income Tax P45 PAYE tax tax code Taxation termination

Court refuses to sever offending wording in restrictive covenant clause if it affected another clause – Francotyp-Postalia v Whitehead, High Court

13 March 2011 | Paul Gershlick

The franchisor and franchisee had restrictive covenants on the franchisee after termination. In order to be enforceable, restrictive covenants have to be reasonable as to duration, area and content. If...

Tags on this discussion: agreement agreements area blue pencil test breach breach of contract commercial commercial agreement commercial agreements Commercial contract commercial contracts commercial law contract contracts duration franchise agreement franchisee Franchising franchisor High Court non-compete non-solicitation reasonable reasonableness restrictive covenant Restrictive Covenants severability term termination unenforceable unreasonable

Agent entitled to indemnity even if serious breach discovered after termination notice has been given – Volvo v Autohof, European Court of Justice

20 November 2010 | Mark Weston

Under the European Union’s Commercial Agents Directive, agents are entitled to be indemnified or compensated on termination of their agency agreements, except in some limited situations such as when...

Tags on this discussion: agency agent commercial agent Commercial Agents Directive Commercial Agents Regulations compensation Court of Justice of European Union Court of Justice of the European Union Directive ECJ EU EU Directive EU law Europe European Court of Justice European Union indemnity notice principal terminate termination

Give your notice, then act completely normal – Ericsson Ltd v Hutchison 3G UK Ltd, High Court

10 November 2010 | Mark Weston

The High Court ruled that, despite three years’ notice being given by Hutchison that a seven year contract was going to terminate at the end of the seven year term, the specific winding down provisions...

Tags on this discussion: agreement breach of contract commercial commercial agreement commercial agreements Commercial contract commercial contracts commercial law contract contract law contracts corporate High Court notice terminate termination

Liquidated damages does not always need to be genuine pre-estimate of loss to be enforceable – Azimut-Benetti v Healey, High Court

8 November 2010 | Mark Weston

Liquidated damages are clauses in contracts that provide for a pre-agreed value to be paid in the event of a breach of contract by one of the parties. Commonly, they are used when there is a delay to performance....

Tags on this discussion: agreement breach breach of contract commercial commercial agreement commercial agreements Commercial contract commercial contracts commercial law commercial purpose contract contracts delay freedom of contract guarantee High Court invalid late liquidated damages penalty penalty clause pre-estimate summary judgment terminate termination unenforceable void

Software reseller’s failure to provide accurate information entitled licensor to terminate – Softlanding Systems v KDP, Court of Appeal

5 November 2010 | Mark Weston

KDP licensed S to act as a reseller for KDP’s software. The agreement required S to pay royalties and provide reports and certain information to KDP, including who the end users were, the contracts with...

Tags on this discussion: agreement breach of contract commercial agreement commercial agreements Commercial contract commercial contracts contract contract law contracts Court of Appeal High Court IT IT agreement IT contract reseller royalty Software terminate termination

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Latest news and views tagged termination

Jumping the gun and terminating for late performance before the contractual procedure allows leads to wrongdoer becoming the victim – Gesner v Bombardier, Court of Appeal

Agent can act for competing principals under Commercial Agents Regulations – Rossetti Marketing v Diamond Sofa, High Court

Minimum 12- to 36 month gym memberships were unfair – OFT v Ashbourne Management Services, High Court

Changes to the tax treatment of post-termination payments

Court refuses to sever offending wording in restrictive covenant clause if it affected another clause – Francotyp-Postalia v Whitehead, High Court

Agent entitled to indemnity even if serious breach discovered after termination notice has been given – Volvo v Autohof, European Court of Justice

Give your notice, then act completely normal – Ericsson Ltd v Hutchison 3G UK Ltd, High Court

Liquidated damages does not always need to be genuine pre-estimate of loss to be enforceable – Azimut-Benetti v Healey, High Court

Software reseller’s failure to provide accurate information entitled licensor to terminate – Softlanding Systems v KDP, Court of Appeal

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