Reaction Engines Ltd v BNP Paribas Depositary Services (Jersey) Ltd

Reaction Engines Ltd v BNP Paribas Depositary Services (Jersey) Ltd

The Claimant made no clear and unambiguous representation limiting its right to rescind, and the Defendants have no realistic prospect of establishing estoppel by convention or equitable forbearance. The Notice was a valid exercise of the Claimant’s contractual right to rescind under Clause 6.3.2.

Source-derived case information.

Parties
Claimant: Reaction Engines Ltd; Defendant: BNP Paribas Depositary Services (Jersey) Limited; Defendant: BNP Paribas Depositary Services Limited
Jurisdiction
England and Wales
Judgment Date
01 March 2021
Procedural Posture
Civil (property/contract) / Summary Judgment Application
Outcome
Summary judgment granted for the Claimant
Legal Topics
Summary Judgment, Estoppel by Convention, Equitable Forbearance, Rescission of Contract, Lease Agreements
Contract Law Property Law Equity Summary Judgment Estoppel by Convention Equitable Forbearance Rescission of Contract Lease Agreements

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Parties

Reaction Engines Ltd

Claimant

BNP Paribas Depositary Services (Jersey) Limited

Defendant

BNP Paribas Depositary Services Limited

Defendant

Procedural Posture

Civil (property/contract) / Summary Judgment Application

Legal Issues

  1. 1 Whether the Claimant validly exercised its right to rescind the Agreement for Lease under Clause 6.3.2
  2. 2 Whether the Defendants have a realistic prospect of defending the claim based on estoppel by convention or equitable forbearance

Ratio Decidendi

The Claimant made no clear and unambiguous representation limiting its right to rescind, and the Defendants have no realistic prospect of establishing estoppel by convention or equitable forbearance. The Notice was a valid exercise of the Claimant’s contractual right to rescind under Clause 6.3.2.

Court Disposition

Summary judgment granted for the Claimant

Orders

  • Declaration that the Notice served on 18 March 2020 was a valid exercise of the Claimant’s right to rescind under Clause 6.3.2 of the Agreement