Termination Turmoil: When Knowing Your Rights Makes All The Difference

The High Court in URE Energy v Notting Hill Genesis found that whether a party is aware of its termination right under a contract depends solely on the evidence and requires actual, not constructive, knowledge. However, "blind-eye knowledge" where information is obviously available would suffice.

Background

URE entered a contract with Genesis for the supply of electricity across the Genesis housing estate. On advice from its solicitors that it had the right to do so, URE sought to terminate the contract following the amalgamation of Genesis and Notting Hill Housing Trust to form NHG. An earlier, failed, summary judgment application by NHG established that the right to terminate had arisen. The key question here was whether that right had been waived by URE continuing to perform the contract for 8 months following it becoming aware of the amalgamation.