Tele2 International Card Company SA & Ors v Post Office Ltd

Tele2 International Card Company SA & Ors v Post Office Ltd

POL affirmed the Agreement by continuing performance after the right to terminate arose and clause 16 did not preclude affirmation by election. However, Tele2 Ireland failed to prove it suffered any substantial loss as a result of the repudiation, as it would not have received any benefit had the Agreement continued. The Expiry Revenues clause entitled POL to 50% of unused face value, and there was no variation reducing this entitlement. The judge was correct to refuse POL's late application to amend its Defence.

Parties
Appellant/claimant: Tele2 International Card Company SA; Appellant/claimant: KUB 2 Technology Limited; Appellant/claimant: KUB 7 Technology Limited; Respondent/defendant: Post Office Limited
Jurisdiction
England and Wales
Judgment Date
21 January 2009
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Termination of Contract, Affirmation by Election, Damages for Repudiatory Breach, Contractual Construction, Variation of Contract
Contract Law Commercial Law Termination of Contract Affirmation by Election Damages for Repudiatory Breach Contractual Construction Variation of Contract

Case Brief

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Parties

Tele2 International Card Company SA

Appellant/claimant

KUB 2 Technology Limited

Appellant/claimant

KUB 7 Technology Limited

Appellant/claimant

Post Office Limited

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether POL was entitled to terminate the Agreement for failure to provide Parent Company Letters
  2. 2 Whether POL affirmed the Agreement by election through continued performance
  3. 3 Whether clause 16 of the Agreement precluded affirmation by election

Ratio Decidendi

POL affirmed the Agreement by continuing performance after the right to terminate arose and clause 16 did not preclude affirmation by election. However, Tele2 Ireland failed to prove it suffered any substantial loss as a result of the repudiation, as it would not have received any benefit had the Agreement continued. The Expiry Revenues clause entitled POL to 50% of unused face value, and there was no variation reducing this entitlement. The judge was correct to refuse POL's late application to amend its Defence.

Court Disposition

Appeal dismissed

Orders

  • Tele2's appeal dismissed
  • POL's cross-appeal on amendment dismissed