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12 February 2009 / Sara Partington
Issue: 7356 / Categories: Features
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A costly delay

Contractual clauses won’t always offer protection if you delay in reacting. Sara Partington reports

The Court of Appeal last month confirmed that, if Party A delays or fails to react to Party’s B material breach, it can be held to have affirmed the contract despite the agreement containing a clause to the eff ect that delay, neglect or forbearance in enforcing a provision will not be deemed a waiver nor in any way prejudice any right under the agreement. Th at then is a long way of saying that parties to commercial contracts cannot blithely rely on such clauses to excuse them from delay or neglect in acting upon a counterparty’s breach. Protection cannot necessarily be assumed merely from a clause in a contract: a court may nonetheless find that a party has by conduct elected to affi rm the contract and thereby abandoned contractual rights to terminate for material breach.
Appellant companies (T) in Tele2 International Card Co SA (and others) v Post Offi ce Ltd [2009] EWCA Civ 9 entered into an agreement with

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Signature Litigation—Catherine Naylor

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NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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