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ARTICLE · 19 JUNE 2024

When Is Notice Of A Claim Under A SPA Sufficient?

Kuits Solicitors
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The Court of Appeal overturned the High Court's decision on notice of claim under a Sales and Purchase Agreement (SPA). It emphasized that notices must provide sufficient detail but need not exceed practical requirements to ensure validity of claims.

United KingdomLitigation, Mediation & Arbitration
Nichola Evans
Nichola Evans

The Court of Appeal recently overturned the decision of the High Court on whether a party had given proper notice of a claim under a Sales and Purchase Agreement (SPA) taking a pragmatic view on what needs to be provided.

In the case of Drax Smart Generation Holdco Limited v Scottish Power Retail Holdings Limited [2024] EWCA Civ 477 the court was faced with a fairly complicated SPA agreement totalling 225 pages. If the Buyer wished to make a claim for breach of warranty then a claim had to be made within a certain period of time and give "in reasonable detail" the nature of the claim and the amount claimed (detailing the Buyer's calculation of the Loss thereby alleged to have been suffered)'.

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