Overview

A review of two recent cases that illustrate the end of a contractual relationship, and pitfalls to avoid when bringing a contract to an end.

- Tele2 International Card Company SA and others v Post Office
Limited [2009] EWCA Civ 9
- Stocznia Gydnia SA v Gearbulk Holdings Ltd [2009] EWCA Civ
75

In today’s market, it is becoming increasingly common for contracts to be terminated early as parties find that deals struck in the good times are no longer so attractive in times of recession. However when a contractual relationship ends prematurely there are wide range of things that can go wrong.
Parties can easily find themselves in a position where they realise that what were previously viewed as standard boilerplate clauses give inadequate protection in an acrimonious termination situation. Sometimes, despite the terms of the contract, the actions of a party can be held against them and strip them of the protection they previously thought they had.
The following two recent cases shed light in previously unsettled areas, namely the impact of delay at the moment that either termination or affirmation needs to occur and to what extent common law rights may encroach on a contractual relationship.

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