Issues such as repudiation, frustration and compensation are
always at the forefront of an adviser's mind when the word
"termination" is used. Regardless of the motives, if one
party wishes to terminate it needs to make sure that it does so
properly!
The issue of termination has most recently arisen in the case
PBS Energo A.S v Bester Generacion UK Ltd [2020] EWHC 223
(TCC).This case is the latest in a line of judgments on this
project. Both parties alleged a valid entitlement to terminate,
with both parties serving notices of termination.The Court was
concerned as to which notice of termination was effective and
valid.
PBS sought to terminate on the basis of a lack of payment for a
particular milestone; Milestone 5. PBS could not demonstrate that
the milestone was satisfied and because there was no entitlement to
the milestone, there was no payment due and no breach for lack of
making it. The Court found that the entitlement to terminate had
not arisen on this
