We were instructed by the Spanish subsidiary of a client group to advise in this instance on our client’s dispute with a supplier over the construction of a Framework Agreement, a Variation Agreement, and in particular the effect of the clients termination of those agreements. Although the relevant agreements operated in Europe, we were able to advise on this occasion as the contracts were drafted to be governed by and construed and interpreted in accordance with English law. The supplier considered that our clients were not entitled to terminate the agreements before the expiration of their fixed term and claimed very substantial damages. We were able to point out arguments available to our clients from the inadequate wording of the agreement, which defeated the substantial claim for damages by the supplier, and we were able to negotiate a settlement agreement favourable to our clients.
