Settlement Agreement Releases Parties From Rights And Obligations Under Initial Agreement

In its November 9 2017 judgment in Stylianou ao v Top Kinisis Travel Public Limited,¹ the Supreme Court in its appellate jurisdiction reaffirmed the long-established principle that when contracting parties agree to amend or replace an agreement, the new agreement will replace the old one and define all rights and obligations. Accordingly, in a case where a settlement agreement is agreed between the parties, but not fully complied with by one of them, the other party cannot reinstate any of its rights under the initial agreement.

Facts

Following the announcement of a flight delay of approximately six-and-a-half hours, the plaintiffs (a family of five) decided to leave the airport and claim damages from the travel agency on the basis that this was a material breach of contract. The plaintiffs and the travel agency subsequently concluded a settlement agreement, according to which the plaintiffs would receive a specific amount of money and a number of flight tickets in