Lump Sum Scope: Whose Risk is it Anyway?

Lump Sum Scope: Whose Risk is it Anyway?

The English High Court judgement of 16 November 2018 in Clancy Docwra v. E.ON Energy Solutions considers the interaction between a contract’s scope of work and its allocation of risk. This dispute arose from the tension between an employer seeking to make a sub-contract all-risk and goal-oriented, and the sub-contractor seeking to reduce the scope of work to specific items, in order to exclude unpredictable work that had been a requirement of the Invitation to Tender.

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Shareholders' Agreements: Getting a First Refusal Right

Shareholders' Agreements: Getting a First Refusal Right

A right of first refusal notice was issued to major shareholders after a sale had been agreed between one shareholder and an affiliate of another shareholder. The case turned on whether such affiliate could qualify as a “bona fide third party” under the shareholders’ agreement. The High Court applied rules of interpretation recently approved by the Supreme Court, including a detailed analysis of the text and the commercial context of the contract.

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