Behaviour trumps 'non-waiver' clauses, says Court of Appeal
The Post Office was not allowed to walk away from a contract because it had continued to perform its duties for 11 months after the other company breached the contract, the Court of Appeal has ruled.
That continuation of the contract after the breach undermined the Post Office's ability to walk away from the deal, even though the contract had a waiver clause that specifically said that the right to terminate was not affected by delays in taking termination action.
The Post Office had a deal with Swedish telecoms firm Tele2 for pre-paid international phone cards, which the Post Office branded as its own.
The contract was signed in 2001 and said that Tele2 must write to the Post Office seven days before the start of each year guaranteeing that the Swedish parent company would provide the subsidiaries which had signed the contract with enough capital to fulfil their side of the contract.
......
Copyright © 2008, OUT-LAW.com
:
