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Contract – Termination – Whether relationship between parties lawfully terminated – Damages awarded in event termination not lawful

Posted 3/11/2016

Contract – Termination – Whether relationship between parties lawfully terminated – Damages awarded in event termination not lawful  

Facts: The appellant had purported to terminate the contract as a supplier to the respondents, who had been carrying on business as a supermarket. A claim was issued for sums outstanding to the respondent, followed by a counter claim by the respondents. Both were successful, with the effect that the sums awarded in damages and costs effectively set off the sums due under the claim. The appellant now sought to challenge inter alia the finding of wrongful termination on its part. 
Held by Mr President Ryan, the other Justices concurring, that the appeal would be allowed. Having considered the judgments below and the terms of the agreement between the parties, the Court was persuaded that the agreement did not impose a fiduciary duty on the appellant. As such, there was no overriding of the appellant’s ability to terminate in accordance with the terms of the agreement between the parties. The lack of written notice where there had been clear oral notice did not make the termination unlawful. 
ADM Londis PLC v Ranzett Ltd and ors 
19/10/2016 No. 2015/104 [2016] IECA 290

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