The letter stated: ‘in accordance with clause 14.1.2 (.) we hereby terminate the with immediate effect. At 13.02 EE sent administrators an email indicating that EE was terminating the contract by letter said to be attached (in fact sent in a subsequent email at 13.21). One issue was whether the cessation was permanent, or likely to become permanent, as of 13.00pm on 17 September 2014. The cessation of trading turned out to be permanent. Its shops remained open for the weekend, and on Monday morning (15 September) the shops did not open for business. That afternoon the board of directors of Phones 4U met and resolved to seek the appointment of administrators. On Friday 12 September 2014 EE notified Phones 4U that it would not renew the Trading Agreement when it expired. The Trading Agreement contained a termination clause, broadly allowing either party to terminate the contract on the basis that either A) there has been a material breach that either cannot be remedies or has not been remedied in 30 days or B) the other party is unable to pay its debts or takes any steps to initiate any form of insolvency proceedings. The PAYG Terms were additional terms agreed by the parties, governed by the overall Trading Agreement. This was done both for monthly payment customers (‘the Trading Agreement’) and for Pay As You Go customers (‘PAYG Terms’).
PHONES 4U UPGRADE
Phones 4U, a well-known phone retail company, had entered into contracts with EE under which EE would pay Phones 4U for selling mobile phone contracts to new customers, or upgrade contracts to existing customers. To what extent can a termination letter preserve rights under the contract? Can a party sue for damages for breach following termination, if that termination was done under a contractual termination clause and not for breach? A High Court (Comm) decision from January by Andrew Baker J has provided guidance.
PHONES 4U PROFESSIONAL
Professional Liability – Property Transactions.Financial professionals, insolvency professionals, directors & officers.Contentious Probate & Inheritance Act claims.