Category: Commercial Litigation

sale and purchase agreement

Breach Of Warranties In A Sale And Purchase Agreement – Where Do I Stand And What Are The Consequences?

Warranties are commonly found in a range of commercial agreements including within share purchase agreements (“SPAs”) and are one type of legal protection that a buyer may require to be included in an SPA. The essential reason for this is that in the absence of suitable warranties, any buyer may have little remedy in law…

Signing documents

The Importance Of Warranties And Distinguishing Them From Representations

In a share sale (whether of shares or assets) the principle of caveat emptor (buyer beware) applies. The law provides no statutory or common law protection for the buyer as to the nature or extent of the assets and liabilities it is acquiring. Hence, the need for extensive contractual statements in the form of warranties…

‘Idiot’ celebrity chef loses claim based on oral contract

‘Idiot’ celebrity chef loses claim based on oral contract

As is often the case with oral contracts, the details of what was agreed were hotly disputed by the two sides. Mr White said he had entered into an agreement with the two businessmen to run a restaurant. He was to receive a 38% shareholding in return for the use of his name in relation…

Glass Manufacturer granted injunction to protect design rights

Glass Manufacturer granted injunction to protect design rights

The court heard that Utopia Tableware Ltd had registered and unregistered design rights over its Aspen range of glasses, which were characterised by being tall and having a narrow waist towards the centre. The glasses were used by some major brewing companies. Utopia objected when another manufacturer started producing glasses which were very similar in…

Director faced with prison after defying court orders

Director faced with prison after defying court orders

His fellow director was fined £1,000 for his part in the offences. The two men were directors of a company that leased premises to a business tenant. A dispute arose which led to the tenant obtaining three court orders against the two directors. The first injunction required the directors to provide the tenant with keys…

Engineering firm wins court battle over unpaid invoices

Engineering firm wins court battle over unpaid invoices

The issue arose when the French firm complained that the various pieces of engineering machinery did not have certificates of conformity which are necessary under an EU directive. It said this meant they could not be sold and so were unfit for purpose under the Sale of Goods Act 1979. This was in spite of…

Developer wins appeal to quash planning inspector’s decision

Developer wins appeal to quash planning inspector’s decision

The dispute arose after the developer decided to shut down a pig rearing unit and demolish an old farm house. He said he had done so because the council had told him it would approve his planning application. Later when he made his application, the council said there was no such agreement and refused permission….

Developer must repay deposits after contract breach

Developer must repay deposits after contract breach

However, it was not the delay itself that caused the problem, but the lack of due diligence in failing to get the work done as quickly as possible after problems arose. In February 2008, the developer took deposits from several people buying long leases on flats in a large apartment block. The flats were due…

Does your business need a ‘pre-nup’ agreement?

Does your business need a ‘pre-nup’ agreement?

This is particularly true for new or small businesses. For example, if two directors have equal shares in a joint venture, settling disputes can become very difficult. At that point, just like many married couples, both sides may wish they had a business ‘pre-nup’ in place. Such agreements should set out how disputes should be…

Sales manager breached his duty when setting up rival company

Sales manager breached his duty when setting up rival company

The manager was working for an information technology consultancy when he decided to set up a new company of his own. While preparing his new venture, he downloaded some of his employer’s business contacts and copied invoices in order to use them for his own purposes. He also obtained contracts for his new company while…

Hotel retains right of way over neighbour’s service road

Hotel retains right of way over neighbour’s service road

The original owner of the hotel had been granted a licence in 1973 to use the road to provide access for coaches and commercial vehicles. That licence was personal to the original owner and ceased to have effect when new owners acquired the hotel in 1980. In spite of this, however, the hotel continued to…

Be careful about who you allow to sign your contracts

Be careful about who you allow to sign your contracts

It involved a recycling firm which found itself tied into a hire contract for three years when it thought the arrangement was only on a month by month basis. The confusion arose when a landfill manager signed a contract on the firm’s behalf to hire a high-speed shredder. The contract contained a clause saying any…

Man used ‘undue influence’ to gain interest in partner’s property

Man used ‘undue influence’ to gain interest in partner’s property

The Court of Appeal has ruled that a man had used undue influence over his partner when he persuaded her to give him a joint share in her bungalow. The woman already owned the bungalow when the couple began their relationship. She transferred the property into joint names and the couple then bought an adjacent…