Enforceability of Take-or-Pay Provisions in English Law Contracts

Abstract

In a recent case the Commercial Court considered, for the first time, whether a claim based on a ‘take-or-pay’ provision in a sale and purchase agreement should fail because the take-or-pay provision was a ‘penalty clause’. This article considers the impact of this judgment on the interpretation and drafting of contracts containing take-or-pay provisions.

Additional information

Notes on contributors

Ben Holland

*

Ben Holland is a partner and Phillip Ashley a solicitor in the London office of CMS Cameron McKenna LLP specialising in energy disputes. The authors can be contacted by e-mail at, respectively, [email protected] and [email protected].

Phillip Ashley

*

Ben Holland is a partner and Phillip Ashley a solicitor in the London office of CMS Cameron McKenna LLP specialising in energy disputes. The authors can be contacted by e-mail at, respectively, [email protected] and [email protected].