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ARTICLE · 16 JANUARY 2026

Legal Developments In Construction Law: January 2026

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The Court of Appeal recently considered the principle of waiver by election, specifically whether a party's conduct following a contractual termination event can amount to an election to affirm the contract...

United KingdomReal Estate and Construction
Brad Fearn
Brad Fearn
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1. Knowledge requirements for waiver by election in contractual termination rights

The Court of Appeal recently considered the principle of waiver by election, specifically whether a party's conduct following a contractual termination event can amount to an election to affirm the contract, and the extent to which knowledge of that right is required.

The dispute related to a four year electricity supply contract (the "Contract") between URE Energy Limited ("URE") for the supply of electricity to Genesis Housing Association ("Genesis").

The Contract included a clause permitting URE to terminate in certain events, including Genesis' amalgamation, unless the amalgamation was approved in advance. Following Genesis' merger with another entity to form Notting Hill Genesis ("NHG"), URE continued to perform the Contract for several months, only later seeking to terminate and claim a substantial termination payment.

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