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Waiving the right to a Ferrari: Contract Law Revisited – DD Classics Ltd v Chen [2022] ]EWHC 1404 (comm)

Senior Associate Alice Roberts and Associate Jack Beevers discuss a recent decision in which the court reaffirmed key contract law principles relating to waiver and affirmation in the event of a purported election to terminate a contract. The court ruled that exercising a contractual right to terminate must be done within a reasonable time frame. Delay in exercising that right may be interpreted as unreasonable, especially when the decision is simple. Furthermore, knowledge of the facts of a repudiatory breach and one’s own right to terminate as a result of that repudiatory breach may give rise to affirmation where the innocent party fails to exercise its right to terminate in a timely manner.

This article was first published on LexisPSL on 8 July 2022 and can be found here.

The full text of the judgment is available here.

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