Getting contract termination right
The law surrounding termination of contracts can be a minefield. The decision when, how and on what grounds to terminate a contract is often difficult and complex. Entire chapters are devoted in textbooks to the consequences of “getting termination wrong”. Risks will vary according to the facts and terms of each contract but problems can and do arise when parties attempt to terminate a contract without valid justification or when they might lose a right to terminate through delay or continued performance. These issues can lead to very expensive disputes.
Very often our clients come to us for advice about problematic contracts all too late in the day when the dispute has reached a complicated stage. In these cases, we would have liked to provide a guiding hand sooner, because with our expertise, we can assist in “getting termination right”, often maximising a successful claim for damages, or reducing one, depending on which side of the contract our client sits. We were delighted to do just this for one of our clients recently.
Justin successfully negotiated a highly favourable settlement for the client, by way of a substantial cash payment. The excellent result meant that the client would not face the distraction, cost and uncertain outcome of litigation.
Our client was delighted with the outcome and had this to say:
“When it became clear to us that the other party was unlikely to honour our contract, we took Justin’s advice about our next steps. I’m so glad that we did because Justin expertly managed the situation and assisted us to recover far more in damages for breach of contract than even we believed possible. Justin made dry contractual and legal terms understandable to us and impressed us with his judgment. He also quickly grasped the group’s commercial objectives and achieved an admirable balance between the best result, for the minimum cost. We have always been impressed with PDT’s full service offering, and their commercial disputes team provides reassuring support when things don’t go to plan.”
If you require help with contract termination or disputes, please contact our commercial dispute resolution team.