Bank Notes

R - Repudiation

BUNGE SA v NIDERA BV [2015] UKSC 43

Considers the basis on which damages are awarded for anticipatory breach of contract.  An award of substantial damages will not be made for a repudiatory breach of contract if the innocent party would not have received the full benefit of the contract in any event.

SPAR SHIPPING AS v GRAND CHINA LOGISTICS HOLDING (GROUP) LTD [2015] EWHC 718 (Comm)

The court explained why no weight was to be given to the witness statement of a witness who was available to be called [79].  The court considered applicable principles of ratification [88], whether a term is a condition of a contract [92], when time is of the essence [154], and when conduct amounts to a repudiation [208].  On the facts, payment of hire under a charter party had not been a condition.  and there had been a repudiation by the hirer,

25/2/15

HAKIMZAY LTD v  SWAILES [2015] EWHC B14 (Ch)

A buyer's notice making time of the essence of a contract for the sale of land fixed the time for performance.  The seller's failure to comply was a repudiatory breach.  The seller’s subsequent notice of rescission was ineffective.  A late application to amend was rejected.

D&G CARS LTD v ESSEX POLICE AUTHORITY [2015] EWHC 226 (QB)

Considers principles to be applied in deciding whether a breach of contract is a repudiatory breach [170], circumstances in which a term as to good faith or integrity and honesty is to be implied into a contract [174] and circumstances in which liability for acts involving dishonesty or lack of integrity can be attributed to a company [178]. 

MSC MEDITERRANEAN SHIPPING COMPANY SA v COTTONEX ANSTALT [2015] EWHC 283 (Comm)

Liquidated damages payable under a contract are not be be reduced on grounds of the receiving party’s failure to mitigate [71].  On the facts, a contracting party had not been entitled to refuse to accept a repudiatory breach and instead to keep the contract alive solely to claim liquidated (rather than unliquidated) damages for continuing breaches by the other party.  If the claimant had been allowed to keep the contract alive for that purpose the liquidated damages clause would have been a penalty [116]. 

8/4/14

MELLI BANK PLC v HOLBUD LTD, (Comm)

The fact that an Iranian bank had its assets frozen on being designated under Council Decision 2008/475/EC, did not prevent a facility agreement from being performed, nor had the agreement been frustrated.  The defendant could have sought a licence to continue to make payments to the bank, but had failed to do so.  The defendant had not accepted any repudiation of the agreement and was therefore liable for the commitment fee payable to the bank. 

30/10/12

CROCS EUROPE BV v ANDERSON [2012] EWCA Civ 1400

The duties of agents in the Commercial Agents (Council Directive) Regs 1993 do not create contractual conditions breach of which automatically justify termination.  Although a commercial agency is a fiduciary relationship, not all breaches necessarily amount to a repudiation.  The question is how serious in all the circumstances was the conduct.  Applying general contractual principles, and as in the employment context, there will be a repudiation if a party conducts himself in a way which, viewed objectively, is likely to destroy or seriously damage the relationship.  On the facts the judge had been entitled to find that the positing of derogatory comments on the internet had not been sufficiently serious to be a repudiatory breach justifying termination.