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27 July 2012 / Joanne Keillor , Caroline Kehoe
Issue: 7524 / Categories: Features , Commercial
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In it for the long haul?

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Caroline Kehoe & Joanne Keillor examine the consequences of an endeavours obligation on a long term contract

“Parties should approach an endeavours obligation contained within a long-term contract with particular caution”

What are the implications of an endeavours obligation in a long-term contract? What happens if the commercial circumstances change, such that it is no longer desirable for a party to continue to perform a contract in the same way it has been performed initially? Can the party limit or abandon its performance because it would otherwise incur a loss?

These issues arose in the case of Jet2.com Limited v Blackpool Airport Limited [2012] EWCA Civ 417, [2012] All ER (D) 24 (Apr) where the Court of Appeal found, by a majority, that Blackpool’s obligation to use best endeavours to promote Jet2’s low-cost services gave rise to an enforceable obligation to operate outside normal opening hours, as this was essential to Jet2’s business model. Blackpool could not escape this obligation on the basis that to comply would be

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MOVERS & SHAKERS

Arc Pensions Law—Matthew Swynnerton

Arc Pensions Law—Matthew Swynnerton

Chair of the Association of Pension Lawyers joins as partner

Ampa Group—Kamal Chauhan

Ampa Group—Kamal Chauhan

Group names Shakespeare Martineau partner head of Sheffield office

Blake Morgan—four promotions

Blake Morgan—four promotions

Four legal directors promoted to partner across UK offices

NEWS

The abolition of assured shorthold tenancies and section 21 evictions marks the beginning of a ‘brave new world’ for England’s rental sector, writes Daniel Bacon of Seddons GSC

Stephen Gold’s latest Civil Way column rounds up a flurry of procedural and regulatory changes reshaping housing, alternative dispute resolution (ADR) and personal injury litigation
Patients are being systematically failed by an NHS complaints regime that is opaque, poorly enforced and often stacked against them, argues Charles Davey of The Barrister Group
A wealthy Russian divorce battle has produced a sharp warning about trying to challenge foreign nuptial agreements in the wrong English court. Writing in NLJ this week, Vanessa Friend and Robert Jackson of Hodge Jones & Allen examine Timokhin v Timokhina, where the High Court enforced Russian judgments arising from a prenuptial agreement despite arguments based on the landmark Radmacher decision
An obscure Victorian tort may be heading for an unexpected revival after a significant Privy Council ruling that could reshape liability for dangerous escapes, according to Richard Buckley, barrister and emeritus professor of law at the University of Reading
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