News & Analysis as of

Contract Termination Contract Terms Breach of Contract

Pillsbury Winthrop Shaw Pittman LLP

Challenging Trump 2.0 En Masse Contract Terminations

The Trump administration’s en masse terminations for the government’s convenience-as-a-budget-cutting tactic may constitute contract breaches, thereby entitling contractors to lost profits....more

Lathrop GPM

New Jersey Federal Court Grants Summary Judgment Against Hotel Franchise Agreement Guarantor Enforcing Liquidated Damages...

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A federal court in New Jersey recently granted summary judgment against the guarantor of a hotel franchise agreement, requiring him to pay contractual post-termination damages. Ramada Worldwide Inc. v. Keys Hosp., LLC, 2024...more

Fox Rothschild LLP

Three Steps for Contractors Facing Stop Work and Termination Orders on Federal Grants and Contracts

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The Trump administration’s broad suspension and termination of federal grants and contracts have left many contractors wondering how to protect their rights and ensure they get paid. If your federal contract or grant has...more

Holland & Knight LLP

Surrender Condition: Your Lease May Lack a Key Automatic Default Provision

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For commercial landlords, ensuring that tenants return the leased premises in the agreed-upon condition is crucial to protecting their property and income. One effective way to enforce this is by making a tenant's failure to...more

Sands Anderson PC

The Contract Isn’t Signed! What Now?

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If you are involved in a dispute concerning a written, but unsigned, commercial or business contract, do not assume that the lack of signatures makes the agreement unenforceable....more

Lathrop GPM

Pennsylvania Federal District Court Grants Battery Supplier’s Motion to Dismiss Distributor’s Breach of Contract Counterclaims for...

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A federal court in Pennsylvania recently granted battery supplier C&D Technologies, Inc.’s motion to dismiss counterclaims brought by its former distributor Elliott Auto Supply Co, Inc. d/b/a Factor Motor Parts’ (FMP). C&D...more

Lathrop GPM

Texas Federal Court Denies Manufacturer’s Motion to Dismiss Complaint Challenging Termination of Dealer Agreements

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A federal court in Texas denied a manufacturer’s motion to dismiss its dealers’ claims of wrongful termination and breach of contract. Cooper Equip. Co. v. Hitachi Constr. Mach. Americas, Inc., 2024 WL 4467536 (W.D. Tex. Oct....more

Lathrop GPM

Franchisee’s Execution of Competing Franchise Agreement During Franchise Term Forecloses Claims Against Former Franchisor

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A federal court in New Jersey granted the franchisor of the Holiday Inn and Holiday Inn Express brands (Holiday Hospitality) summary judgment on former franchisee Scion Hotels’ complaint alleging violations of the New Jersey...more

Mayer Brown

Hong Kong Court Clarifies the Application of Implied Terms in Employment Contracts

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The recent case of Yang Zhizhong v. Nomura International (Hong Kong) Limited helpfully clarifies the applicability of Implied Term of Trust and Confidence, the Braganza duty and the Anti-avoidance Term in the context of...more

King & Spalding

Saudi Arabia’s New Civil Transactions Regulation

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The Civil Transactions Regulation (the “CTR”) was promulgated on 18 June 2023 and entered into force on 16 December 2023. The CTR was conceived as one of four key reforms announced in February 2021 to enhance the general...more

Morris James LLP

Chancery Refuses to Order Specific Performance Due to Inaccurate Representations and Warranties

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Restanca, LLC v. House of Lithium, Ltd., C.A. No. 2022-0690-PAF (Del. Ch. Jun. 30, 2023) - The parties seeking specific performance of an agreement must establish a clear right to performance, including that all conditions...more

Lathrop GPM

Virginia Federal Court Denies Franchisor’s Motion for Preliminary Injunction

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A federal court in Virginia denied a franchisor’s motion for preliminary injunction against a former franchisee violating the franchise agreement’s post-termination noncompete. JTH Tax, LLC v. Younan, 2023 WL 6304865 (E.D....more

Lathrop GPM

North Carolina Federal Court Rules That Franchise Agreement’s 1-Year Statute of Limitations Clause Barred Action Against...

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A federal court in North Carolina recently dismissed a complaint brought by Bigelow Corporation against its franchisor Hound Town USA because the claims were time barred. Bigelow Corporation v. Hounds Town USA, LLC, 2023 WL...more

Kramer Levin Naftalis & Frankel LLP

HControl Holdings v. Antin Infrastructure Partners: Terminating a Merger Agreement for Immaterial Breach (and Other Holdings)

A recent posttrial decision from Delaware regarding an alleged breach of a capitalization representation in a merger agreement is noteworthy. The decision establishes that a party is within its rights to back out of a deal...more

A&O Shearman

What is material to a material breach of contract?

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Whether or not a breach is “material” is context specific, in particular by reference to the consequences flowing from the breach. In RiverRock v Harnack the High Court found that the dissolution of a consultant was not a...more

Miller Nash LLP

Recession Planning: Prepare Ahead If Contract Terminated for Convenience

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With a recession casting a dark shadow on the new year and news of various projects being put on hold, it is a good time to revisit the checklists on what to do if your contract is terminated for convenience....more

Cooley LLP

Time to terminate? How to mitigate risk

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The coronavirus pandemic and global economic and political uncertainties mean that more businesses than ever are tied into unprofitable contracts or are required to purchase unwanted goods and services. Alternatively, they...more

Miller Canfield

Sixth Circuit: Reasonable Notice Required to Terminate a Successive Contract

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​​​​​​​The Sixth Circuit recently held that even where a supplier has a right to terminate a contract without cause, the supplier still must give the buyer reasonable notice of termination. In Stackpole International...more

A&O Shearman

Choppy waters for party seeking to invoke termination clause

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Another reminder of the importance of getting termination right. Although the notice sent talked about anticipatory repudiatory breach, in fact the breach relied on was of an express provision which required actual, rather...more

Stark & Stark

The How, When, and Why of Franchise Termination in New Jersey

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Terminating a franchise can pose several potential pitfalls and expose a franchisor to significant liability. A franchisor may not simply cancel, terminate, or refuse to renew a franchisee for just any reason....more

A&O Shearman

How best to manage the early stages of a contractual dispute

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Even seasoned litigators accept litigation can be time-consuming, often expensive, and uncertain. While you may in some cases be able to avoid it entirely, what should you do (or, for that matter, not do) in the early stages...more

Kilpatrick

Is There Liability for Terminating Contracts Related to Russia?

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In part two of our discussion of commercial issues surrounding the Russian invasion of Ukraine, Thomas G. Allen, Kilpatrick Townsend Partner and Global Lead for International Disputes, focuses on the legal implications of a...more

Dorsey & Whitney LLP

“Everything zen? Everything zen? I don’t think so...” - MAE Clauses in the Time of COVID

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On March 1, 2022, the Delaware Court of Chancery delivered a memorandum opinion ordering a yoga franchisor to complete the acquisition of its franchisee’s chain of yoga studios. The case arose out of the parties’ pre-COVID...more

Lewitt Hackman

Franchisor 101: No Tax on Renewals

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A federal court in Virginia denied tax franchisor, Liberty Tax’s, motion to dismiss complaints by two of its area developers (“ADs”). The ADs claimed Liberty Tax breached their contract for wrongfully terminating, failing to...more

BCLP

High Court considers repudiatory breach and wrongful termination in an aircraft lease contract dispute

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The High Court recently considered the termination of an aircraft lease to purchase contract between OCA and Novans (an aircraft broking and consultancy company). In finding for the Claimant, the judgment considers the thorny...more

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