Gesner Investments Ltd v Bombardier Inc

Gesner Investments Ltd v Bombardier Inc

The contract's language is clear that after 90 days of non-excusable delay, the buyer's right to terminate is exercised only pursuant to article 9.2, which requires written notice specifying the breach and a further 10-day grace period to cure. Article 8.4 does not provide a free-standing right to terminate; the procedure in article 9.2 must be followed. The buyer's notice of termination was ineffective as it did not comply with article 9.2.

Parties
Claimant / Appellant: Gesner Investments Limited; Defendant / Respondent: Bombardier Inc
Jurisdiction
England and Wales
Judgment Date
11 October 2011
Procedural Posture
Civil Appeal (contractual Dispute) / Appeal From Summary Judgment
Outcome
Appeal dismissed
Legal Topics
Interpretation of Contract Clauses, Termination of Contract, Liquidated Damages, Remedies for Breach of Contract
Contract Law Commercial Law Interpretation of Contract Clauses Termination of Contract Liquidated Damages Remedies for Breach of Contract

Case Brief

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Parties

Gesner Investments Limited

Claimant / Appellant

Bombardier Inc

Defendant / Respondent

Procedural Posture

Civil Appeal (contractual Dispute) / Appeal From Summary Judgment

Legal Issues

  1. 1 Whether, after 90 days of non-excusable delay in tendering the aircraft for inspection and delivery, the buyer was entitled to terminate the contract forthwith under clause 8.4, or only after serving a written notice under clause 9.2 granting the seller an opportunity to remedy the breach.

Ratio Decidendi

The contract's language is clear that after 90 days of non-excusable delay, the buyer's right to terminate is exercised only pursuant to article 9.2, which requires written notice specifying the breach and a further 10-day grace period to cure. Article 8.4 does not provide a free-standing right to terminate; the procedure in article 9.2 must be followed. The buyer's notice of termination was ineffective as it did not comply with article 9.2.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.