The recent ruling by the Supreme Court in King Crude Carriers SA v Ridgebury November LLC marks a significant development in contract law. The Court has clarified that when a contractual condition precedent is not fulfilled due to a breach, the appropriate remedy is typically damages, rather than automatically treating the condition as satisfied.

This ruling will have implications for several areas, including:

– Milestone payments

– Performance-based contracts

– Completion certificates

– Incentive and bonus mechanisms

Furthermore, this decision reinforces a strict interpretation of contractual risk allocation, emphasizing the importance of clarity in contract drafting.

Our upcoming 2-day Contract Law and Drafting course will delve into this ruling and explore many other critical aspects of contract and commercial management.