Compact Contract

A brief look at topical issues in contract

02 March 2020 - Emma Warren

In Donovan v Grainmarket, the High Court held that a joint venture party, to an agreement contained in heads of terms, was entitled to his performance fee, even though he had arguably abandoned the venture. In 2012, the parties entered a joint venture to acquire commercial properties and redevelop them for residential use. The parties › Read More

28 January 2020 - Helen Biggin

In Kabab-ji v Kout Food, the Court of Appeal considered the “estoppel test” from the Supreme Court’s decision in MWB v Rock: a party can be estopped from relying on a no oral modification clause if their words or conduct unequivocally represented that the modification was valid. Kabab-ji argued, unsuccessfully, that provisions of good faith › Read More

23 December 2019 - Rhona Egerton

In Blackstar v Cheyne Capital, the Court of Appeal held that restructuring an investment meant it was no longer subject to the original arrangement so the right to a fee was extinguished. Starting with a memorandum of understanding, the parties had entered into various agreements between 2006 and 2009 that set out the terms on › Read More

18 November 2019 - Jason Rix

Nevermind the John Lewis ad, the Christmas event for the true contract law geek is the supplement to The Interpretation of Contracts by Sir Kim Lewison. So here’s a summary of some of what made it to latest update (just out, but the cut-off date for developments is 31 July 2019): Deleted words: unsurprisingly, Lewison › Read More

12 November 2019 - Oliver Rule

[It’s rare for a contract case to be covered by talkSPORT, ESPN, or The Sun, nevermind one concerning good faith. But in case you’ve missed their coverage, with thanks to ardent LFC supporter Oli Rule, here’s Compact Contract’s take on New Balance v Liverpool. Or, as the court put it, “This is (another) dispute about › Read More

25 October 2019 - Becky Valori

In Great Dunmow Estates v Crest Nicholson the Court of Appeal held that a signed agreement over the valuation date for an expert determination was not contractually binding since it did not comply with a variation clause in the underlying contract. The dispute related to a conditional contract for the sale of land which provided for › Read More

23 October 2019 - Jason Rix

In a recent decision, upholding a refusal to grant summary judgment, the Court of Appeal held that an entire agreement clause and an exemption clause were ineffective to prevent a Quincecare duty arising or to exclude liability under that duty. In simplified form, a Quincecare duty means that a bank must not make a payment › Read More

30 September 2019 - Briony Langley-Miles

In Lamesa v Cynergy, the High Court clarified the meaning of “in order to comply with any mandatory provision of law” in an English law governed facility agreement, allowing the borrower to avoid making payments where to do so might breach U.S. federal law imposing secondary sanctions. Lamesa, acting as lender, was a Cypriot company › Read More

24 September 2019 - Bethany Gregory

In Lehman Brothers v Exotix Partners, the parties to an oral trade in Peruvian government global depository notes were both mistaken as to their value, resulting in the buyer receiving a windfall which it was effectively ordered to repay. Lehman Brothers and Exotix, a securities broker, entered into a trade by telephone on a recorded › Read More

20 September 2019 - Sykes Mitchell

In Sumitomo Mitsui Banking Corporation v Euler Hermes, an assignment was not effective where a requirement for a confirmation had not been waived in compliance with a “no waiver” provision; but a power of attorney saved the day. As part of a public private partnership scheme for the construction of a waste treatment facility in › Read More