Contracts: termination: worked examples

by Practical Law Commercial

A practice note offering guidance on the complex practical issues surrounding the termination of commercial contracts under English law, based on FAQs raised by Practical Law subscribers. This practice note uses a series of worked examples based on real-world scenarios to explore common law and contractual termination rights. It addresses common situations such as long delays in performance, consistent non-payment and changes in a party's corporate structure. It also examines legal and practical issues arising when a contract appears to be abandoned or when the parties have continued to perform a contract after its expiry or termination. It considers the legal principles of repudiatory breach, the duty to mitigate and the choice between terminating for cause or for convenience. It also provides insight into procedural requirements, including serving valid termination notices, the consequences of a defective notice and suggesting practical steps after service of a contested notice.