SPONSORED EDITORIAL industry solutions
2 AURORA’S NEW EMERGENCY RANGE SHINES A SPOTLIGHT ON SOLUTIONS
Termination of
Construction Contracts By James Duff,
Senior Associate in Construction
Aurora Lighting has launched a comprehensive new selection of emergency lighting as part of its ever-growing commercial range. It includes a choice of both maintained and non-maintained solutions plus manual test and self-test options, designed for use in a wide range of applications. For example, the surface mounted/ recessed downlight is perfect for use on concrete ceilings, but it also has a recess option. All of Aurora’s emergency products are mains powered, resulting
in a faster and cheaper installation process, and one where standard wiring material can be used. It also means low maintenance costs due to only periodic testing and general cleaning required as well as low hardware costs. To find out more, go to
auroralighting.com
Te case of Our Generation Ltd v Aberdeen City Council concerned various long- term agreements which Our Generation had entered into with the council governing installation of solar panel systems on council-owned buildings. Te agreements included detailed termination provisions. Our Generation issued
termination notices to pull out of the long-term agreements on the ground that the council had failed to make payment of overdue invoices. A dispute
arose and Our Generation sought declarator that it had validly terminated each of the agreements, together with payment from the council of more than £8 million. Te termination clause
provided that the innocent party could terminate if “the other party fails to make punctual payment of any amount properly due to the former party under this agreement and such amount remains unpaid at the expiry of 20 banking days after receiving written notice from the former party ”. Te key issue was
David Hughes: 0131 561 0022
davidh@connectcommunications.co.uk
whether Our Generation had given such written notice requiring payment of the unpaid and overdue sums. Our Generation said it had
done this, as it had issued an email to the council with a statement of account attached detailing several overdue invoices which read: “Please see attached statement of balances now overdue, owing to Our Generation Solar.” Te council didn’t make
payment within 20 banking days of the email, so Our Generation sought to terminate the contract. Te question for the court was did the email amount to a valid written notice requiring payment in accordance with the contract. Lady Wolffe
refused declarator and dismissed Our
Generation’s claim. She held that “a simple statement that
the balances were ‘overdue’ and ‘owed’ to Our Generation Solar does not fulfil the requirement of a default notice ‘requiring payment’ “. Our Generation appealed
the decision and the Inner House refused the reclaiming motion. Some may consider this
a harsh decision. Tis case is a stark reminder to consider very carefully the precise notice requirements in a contract and when they require strict compliance.
To find out more, email
james.duff@macroberts.com or call 0131 229 5046.
CABLEtalk FEBRUARY/MARCH 2020 53
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