We are pleased to share a successful outcome at the Court of Appeal this week, where the Court upheld our client’s appeal in a contractual dispute concerning the lawfulness of a termination.
A central issue in the case was a clause that permitted the other party to terminate the contract if our client failed to meet a specific obligation by a certain date. Although our client had not complied by the deadline, the other party did not act promptly. Instead, it entered into negotiations and engaged in correspondence discussing alternative solutions, only to terminate the contract several months later.
The Court of Appeal reversed the first instance decision, accepting our argument that, in the circumstances of the case, the other party had waived the material term as to time through its conduct. The Court confirmed that once such a material term is waived, a party must give reasonable notice in clear terms if it wishes to make time of the essence again before lawfully terminating the contract on that basis.
This is an important decision, as it reinforces the principle that contractual rights tied to timing must be exercised promptly and clearly.
The case was successfully handled by our litigation counsel, Athina Athanasiadou.
The judgment can be found here.
