Serving notice in accordance with your contract

During fraught exchanges, it is easy to miss the requirement to serve notice in the specific manner set out in your contract. Yet it is crucial and the Courts continue to address the point consistently when cases on the service of notice are heard. 

In the case of GPP Big Field LLP & Anor vs. Solar EPC Solutions SL [2018] EW HC 2866 the Court considered a claim for liquidated damages and whether a damages clause constituted a penalty and in doing so highlighted the consequences of failing to give notice in the prescribed manner.

The case: 

Prosalia UK Limited was engaged by GPP to construct solar power generation plants across the UK. Prosalia fell into insolvency and the contracts were assigned to its guarantor, Solar EPC Solutions.  GPP brought a claim against Solar for the delay in the power generation plants being commissioned in accordance with the timescales set out in the contracts.

How many contracts?

There were in fact five contracts which had to be assigned and in relation to one of those contracts, Solar raised an argument that objections from local residents amounted to a force majeure event resulting in Prosalia being entitled to an extension of the time to commission the generation plant.

The contract specified that the party seeking to argue a force majeure event was required to give notice to the other party. 

The Court held that because the contract contained specific notice requirements, notice of a force majeure event had to comply with these. Unfortunately Prosalias’ notice had not complied.

Always make sure you are aware of a contracts terms

This is a good reminder that where a contract specifies certain notice requirements, all notices served under that contract must comply with the requirements. It is important that all concerned in the contract and project management are fully aware of the contract terms and refer back to them. Failing to comply could result in being prevented from pursuing a claim that is conditional upon the service of a valid notice.

For further advice and assistance please contact our Private Client Team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk