Force India Formula One Team Ltd v Etihad Airways PJSC & Anor [2010] EWCA Civ 1051 (06 October 2010)

Force India Formula One Team Ltd v Etihad Airways PJSC & Anor [2010] EWCA Civ 1051 (06 October 2010)

The sponsors, with full knowledge of alleged breaches, acted in a manner consistent only with affirmation of the contract and waived or acquiesced in any breaches. Any breaches were remediable and no proper notice was given. The sponsors repudiated the contract and Force India was entitled to accept repudiation and claim damages.

Citation
[2010] EWCA Civ 1051
Parties
Respondent / Claimant: Force India Formula One Team Limited; Appellant / Defendant: Etihad Airways PJSC; Appellant / Defendant: Aldar Properties PJSC
Jurisdiction
England and Wales
Judgment Date
06 October 2010
Procedural Posture
Appeal / Court of Appeal (civil Division) Judgment
Outcome
Appeal dismissed; sponsors found liable for repudiation.
Legal Topics
Repudiation, Termination of Contract, Waiver, Affirmation, Sponsorship Agreements
Contract Law Commercial Law Repudiation Termination of Contract Waiver Affirmation Sponsorship Agreements

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Parties

Force India Formula One Team Limited

Respondent / Claimant

Etihad Airways PJSC

Appellant / Defendant

Aldar Properties PJSC

Appellant / Defendant

Procedural Posture

Appeal / Court of Appeal (civil Division) Judgment

Legal Issues

  1. 1 Whether the sponsorship agreement was repudiated by the sponsors or by the team company
  2. 2 Whether breaches alleged were material and remediable
  3. 3 Whether the sponsors affirmed or waived breaches

Ratio Decidendi

The sponsors, with full knowledge of alleged breaches, acted in a manner consistent only with affirmation of the contract and waived or acquiesced in any breaches. Any breaches were remediable and no proper notice was given. The sponsors repudiated the contract and Force India was entitled to accept repudiation and claim damages.

Court Disposition

Appeal dismissed; sponsors found liable for repudiation.

Orders

  • Etihad to pay $3,084,465 in damages to Force India
  • Aldar to pay $2,056,310 in damages to Force India