Enter your email address in the box to the right of this page to receive email updates from Compact Contract as and when new content is published.
Whether it is a dispute involving a merger and acquisition/sale, commercial contract or business competition, our litigators take a practical, commercial approach.
Welcome to Compact Contract where Allen & Overy litigators analyse contract law and what it means for your business.
23 April 2021 Aaron Jones
An agreement between a designer and property developer for the interior design of a luxury residential development did not require an implied term that the developer would sell the apartments within a reasonable time as a matter of business efficacy or obviousness: Yoo Design Services v Iliv Realty. A luxury designer, Yoo, entered into a › Read More
20 April 2021 Jason Rix
Compact Contract is moving to the main A&O website. It will hopefully be easier to find and generally look a bit more A&O. The content and ethos will be the same. If you are currently a subscriber, you will be migrated to the new site. This process is currently scheduled to start on 28 April, › Read More
19 April 2021 Lawrence Clare
Exclusion clauses are to be construed by reference to the normal rules of contractual interpretation even in cases of alleged deliberate, fundamental or wilful breach: Mott Macdonald v Trant Engineering. Under a settlement and services agreement Mott Macdonald provided consultancy services about work being carried out by Trant Engineering at an RAF military base in › Read More
09 April 2021 Tom Lort
Following breach of a restrictive covenant, Score Draw applied to the court for damages and injunctive relief claiming PNH’s breach had caused Liverpool FC’s refusal to renew a retail licence: Score Draw v PNH International. Score Draw were a licensed retailer of retro football shirts for Liverpool FC. The shirts were sourced from PNH, who › Read More
30 March 2021 Helen Biggin
The English Court has twice rejected claims by aircraft lessees who wanted the return of their security deposits because of the COVID-19 pandemic: Salam Air v Latam Airlines and Fibula Air v Just-US Air. [Ed: the cases are interesting beyond aircraft finance since, for the moment, there’s still not much case law discussing COVID.] In › Read More
15 March 2021 Jason Rix
Following a borrower default, when a bank was considering whether to enforce its security, a statutory implied term of reasonable care in a loan was of no consequence and it was not right to imply the term into a mortgage (which wasn’t a contract for services anyway): Morley v RBS. Nor had the bank acted in › Read More
11 March 2021 Danielle Tullett
The court in Permavent v Makin determined that although the provision before it was “extremely harsh” it was not “out of all proportion” to the claimants’ legitimate business interests and so was not an unenforceable penalty. Makin and Yeremeyev had operated a business which supplied roofing products to the construction industry through several companies, including › Read More
04 March 2021 Sophie Orwell
The law around unenforceable penalty clauses is well-known but the question of how to apply it in practice is notoriously tricky. The court has recently looked at this issue again in De Havilland v Spicejet. The Indian airline Spicejet agreed to purchase aircraft from the Canadian manufacturer De Havilland. Spicejet failed to pay some of › Read More
01 March 2021 AOCompactContract
Now that the COVID-19 vaccine contract between the EU and AstraZeneca has been published, we take a look at it and the “Best Reasonable Efforts” provisions. The production issues facing the roll-out of the EU vaccination programme have led some to question the centralised approach taken by the European Commission in its procurement of the › Read More
12 February 2021 Mohamed Sacranie
Is a parent company liable if it restructures its operations and a now disused subsidiary is prevented from meeting its own contractual obligations? In Kawasaki v Kemball, the Court of Appeal held that the parent neither induced nor intended its subsidiary’s breach and reaffirmed this economic tort’s restricted scope. Kawasaki formed a joint venture and › Read More