A supplier has failed in its bid to use a force majeure event as a reason to avoid repaying a customer after it failed to fulfil a contract. The issue arose after the two parties entered into a contract in February 2019 for the supply of sulphur diesel. In accordance with the contract, the buyer
The government is introducing new powers to clamp down on directors who dissolve companies to avoid paying their liabilities. Rogue directors may be required to pay compensation to creditors. The new legislation extends the Insolvency Service’s powers to investigate and disqualify company directors who abuse the company dissolution process. The Rating (Coronavirus) and Directors Disqualification
A phone supplier has been told it cannot enforce a cancellation clause in a contract with a customer because the terms are “too onerous”. The case involved Blu-Sky Solutions Ltd and Be Caring Ltd. Be Caring, a social care provider, had a contract for a mobile network service (MNS) to provide mobile telephone handsets for
The High Court has ruled that a telephone conversation between the managing directors of two companies amounted to a binding agreement and had to honoured. The case involved Mansion Place Ltd v Fox Industrial Services Ltd. Mansion had engaged Fox to refurbish and extend student accommodation. There were delays in the performance of the works.
A director who breached his legal duties while running a company has been ordered to pay more than £600,000 compensation. The claimant in the case had set up a company called GBR in late 2010 to take over a recycling business. He had been disqualified from acting as a director and entrusted GBR’s growth and
A firm of engineers have been told they cannot use an ‘overarching contract’ defence to limit their liability for deficient work in a dispute with a homeowner. The issue arose after the homeowner, Mr Elton, hired Buxton Associates (Consulting Engineers) Ltd to carry out engineering consultancy work. He was dissatisfied with the work and his
A construction firm has won its claim for the payment of three outstanding invoices despite the customer arguing that the three payments could not be treated as one single case. The issue arose after Creagh Concrete Products Ltd entered into an oral construction contract with Quadro Services Ltd. During the contract period, Quadro made various
Two directors did not breach their legal duties when they paid themselves a total of £1.2m from their failing company. That was the decision of the High Court in a case involving, Brookmann Home Ltd (In Liquidation). The company had been formed as a vehicle to purchase a textile business. Most of the purchase price
A UK importer has won its claim for compensation in a dispute with a Belgian company over the supply of Covid face masks. The case involved Local Boy’z Ltd, which agreed numerous contracts with Malu NV for two types of face mask, the KN95 masks and the Type IIR masks. Both products were manufactured in
A businessman has failed to get an injunction that would have prevented his company filing accounts and holding board meetings. He also failed to establish that a board room colleague had not been validly appointed as a director. The company involved, which provided finance to small businesses, had been acquired by Mr Katan and Mr