Contract: Court Backs Openness

19/01/2011


When circumstances change materially during the negotiation of a contract, there is a duty to inform the other party of the change in circumstances.
 
In a recent case in which this was not done, the court ruled that the failure was significant enough to constitute misrepresentation on the part of the party to the contract who was aware of the change in circumstances but did not tell the other party.
 
Although the claims made were not ‘destitute of foundation’, they were sufficient to breach the normal warranties given during such negotiations.
 
We can advise you of your rights and responsibilities throughout all contractual negotiation.

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