header-logo header-logo

26 May 2023 / Anna Lancy , Robert Strang
Issue: 8026 / Categories: Features , Commercial
printer mail-detail

What is ‘reasonable notice’?

In the absence of a formal written agreement, how will the courts determine ‘reasonable notice’ for termination? Anna Lancy & Robert Strang consider the key factors
  • In the absence of an express provision in an agreement, termination must be on reasonable notice.
  • What is reasonable notice will depend on the circumstances. The factors that a court will generally consider were summarised in the case of Jackson Distribution Limited v Tum Yeto Inc [2009] EWCA 982 (QB).
  • If reasonable notice is not given the termination will still be valid, but the other party will likely be entitled to damages. The measure of damages is likely to be the party’s loss of profits during what would have been a reasonable notice period, subject to the duty to mitigate.

First: can the court imply a reasonable notice period to terminate an agreement?

Reasonable notice

Where a contract is silent on term or termination rights, it can still be terminated on ‘reasonable notice’ on the part of one or both parties (Winter

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

London Solicitors Litigation Association—John McElroy

London Solicitors Litigation Association—John McElroy

Fieldfisher partner appointed president as LSLA marks milestone year

Kingsley Napley—Kirsty Churm & Olivia Stiles

Kingsley Napley—Kirsty Churm & Olivia Stiles

Firm promotes two lawyers to partnership across employment and family

Foot Anstey—five promotions

Foot Anstey—five promotions

Firm promotes five lawyers to partnership across key growth areas

NEWS
Freezing orders in divorce proceedings can unexpectedly ensnare third parties and disrupt businesses. In NLJ this week, Lucy James of Trowers & Hamlins explains how these orders—dubbed a ‘nuclear weapon’—preserve assets but can extend far beyond spouses to companies and business partners 
A Court of Appeal ruling has clarified that ‘rent’ must be monetary—excluding tenants paid in labour from statutory protection. In this week's NLJ, James Naylor explains Garraway v Phillips, where a tenant worked two days a week instead of paying rent
Thousands more magistrates are to be recruited, under a major shake-up to speed up and expand the hiring process
Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
back-to-top-scroll