Notification clauses: Warranty and peace

Gwendoline Davies explains why notifying contractual warranty claims can be a particularly tricky business ‘The purchaser‘s letters did not constitute valid notification of a claim because, without identification of the specific warranties alleged to have been breached, they did not set out the legal grounds for a claim.‘ In recent years, the UK courts have …
This post is only available to members.

Drafting: If the cap fits

James Farrell and Sophie Jones explore the lessons to be learned from a recent case on liability caps ‘Although the court will consider commercial common sense and the surrounding circumstances, its focus is first and foremost on the language used. The language used is something that contracting parties have control over, and they should exercise …
This post is only available to members.

Contract: Take no notice

Sapna Garg investigates a recent judgment with implications for business and share sale agreements ‘In cases of similarly worded clauses, a claims notification is unlikely to be valid if it sets out the circumstances giving rise to the claims and provides only a general indication of the various clauses which may have been breached.‘ The …
This post is only available to members.

Contract: Including exclusion

Gwendoline Davies looks at the courts’ changing approach to interpretation of exclusion clauses ‘The Unfair Contract Terms Act (UCTA) can determine the enforceability of clauses which seek to restrict or exclude business liability in some commercial contracts, including the majority of supply contracts.’ The interpretation of exclusion clauses in commercial contracts has continued to prompt …
This post is only available to members.

Contract: Nohow or contrariwise

Paul Brehony and William Gow consider the pendulum of case law in contractual interpretation ‘Parties should draft express provisions to clarify intention and not rely on pre-contractual representations or negotiations.’ In Investors Compensation Scheme Ltd v West Bromwich Building Society [1997], Leggatt LJ cited Alice Through the Looking Glass when rejecting the interpretation adopted by …
This post is only available to members.

Remedies: Out of gas

Doug Wass and Nikolas Ireland provide an update on contractual remedies ‘While the principle remains that a party does not intend to give up common law rights without making it clear it intends to do so, it should not operate as a blind presumption to the detriment of proper analysis of the clause in question.’ …
This post is only available to members.

Damages: Of little consequence

Jeremy Farr and Shawn Kirby discuss the interpretation of a consequential loss clause ‘The correct starting point of interpretation of the clause was with the natural and ordinary meaning of the language chosen by the parties to give effect to their intent.’ In a decision with potentially far-reaching implications for commercial parties generally and the …
This post is only available to members.