Dany Lions Ltd v Bristol Cars Ltd

Dany Lions Ltd v Bristol Cars Ltd

Clause 2 of the Settlement Agreement is unenforceable as it is no more than an agreement to agree with a third party, lacking sufficient certainty and objective criteria for performance. Even if enforceable, DLL used reasonable endeavours to contract with JSW, and any alleged breach did not cause BCL loss. DLL is...

Source-derived case information.

Parties
Claimant: Dany Lions Ltd; Defendant: Bristol Cars Ltd
Jurisdiction
England and Wales
Judgment Date
21 March 2014
Procedural Posture
Civil / Judgment After Trial
Outcome
Judgment for the Claimant (DLL)
Legal Topics
Reasonable Endeavours Clauses, Agreements to Agree, Damages for Breach of Contract, Certainty in Contract Terms
Contract Law Reasonable Endeavours Clauses Agreements to Agree Damages for Breach of Contract Certainty in Contract Terms

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Parties

Dany Lions Ltd

Claimant

Bristol Cars Ltd

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Is Clause 2 of the Settlement Agreement, requiring DLL to use reasonable endeavours to contract with JSW, enforceable?
  2. 2 If enforceable, did DLL use reasonable endeavours to enter into an agreement with JSW by the deadline?
  3. 3 If DLL failed to use reasonable endeavours, did that cause DLL’s loss?

Ratio Decidendi

Clause 2 of the Settlement Agreement is unenforceable as it is no more than an agreement to agree with a third party, lacking sufficient certainty and objective criteria for performance. Even if enforceable, DLL used reasonable endeavours to contract with JSW, and any alleged breach did not cause BCL loss. DLL is entitled to damages for the difference between the original contract price and the actual cost of restoration.

Court Disposition

Judgment for the Claimant (DLL)

Orders

  • BCL to pay DLL £118,155.50 in damages plus interest of £6,057.87, total £124,173.37