Contract law update
Feature | 6 December 2013
In Barclays Bank plc v UniCredit Bank AG and another [2012] EWHC 3655 (Comm), the High Court had to ask whether consent to terminate certain finance transactions had been refused in a "commercially reasonable manner". The court imposed an objective standard of reasonableness; would a reasonable commercial man have reached the same decision? It is unusual to question reasonableness of consent in the context of finance transactions. The matter will be appealed in 2014.
In Mid Essex Hospital Services NHS Trust v Compass Group UK and Ireland Ltd (trading as Medirest) [2013] EWCA Civ 200 the Court of Appeal asked whether a discretion to self-award payment deductions on breach was subject to an implied term that such awards would not be exercised in an arbitrary, capricious or irrational manner. The court found no such term. Only an explicit statement of such would have improved the claimant's case.
Guarantors' liability
Two major cases in 2013 considered the liability of guarantees or sureties. In Aviva Insurance Ltd v Hackney Empire Ltd [2012] EWCA Civ 1716, the Court of Appeal found that loans made to a contractor by a principal keen to ensure that the job was completed did not affect the guarantor's obligations
My comment
I think we have to examine about contract law, because contract law was made a long time ago, so there may be some parts that do not fit in today's society. I think a reasonable manner that's important.http://www.solicitorsjournal.com/commercial/contract/contract-law-update
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