RE: What's new?6 Jul 2020 10:44
Hi Jayquethedog
Comparisons between minor and major breaches can only take you so far. Sometimes parties will negotiate terms along those lines but other times the contract will much more aggressively favour one of the parties. For example, in debt finance a lender will often have the right to terminate the contract and enforce if the borrower breaches any term whatsoever in the contract. Enemy something as minor the borrower failing to deliver certain information e.g. management accounts to the lender on a specified day. In practice the lender won’t enforce on those circumstances unless they really want out of the deal and have no other get out. But that doesn’t change the fact that they would often technically be entitled to do so. In cine’s case this seems like it may be a moot point because, whether or not they were obliged to do so, cine seems to have given plex the opportunity to rectify the breaches it has alleged. In such circumstances, this will likely boil down to whether plex did in fact breach the terms or not. One would hope that cine has been well advised enough to be on a very side footing before pulling the trigger on the termination. As for the damages side, again this could be determined by the contract itself which may contain provisions specifically dealing with the sum of money the other party will be entitled to if the counterparty wrongfully terminates.