The recent case of GPP Big Field LLP & Anor v Solar EPC Solutions
[2018] provides a useful reminder in understanding the importance of
contractual notice requirements.
Prosalia UK Lltd was engaged by GPP under five contracts to construct
solar power generation plants. As Prosalia had become insolvent the
contracts were assigned to Solar EPC Solution, the parent company.
The solar power generation plants had not been constructed in
accordance with the timescale set out in the contracts and consequently
GPP sought to claim against the parent company for delay damages.
Solar had raised the argument that, in relation to one of the
contracts, the local residents had protested against the solar pants and
claimed that this amounted to a force majeure event and claimed they
were entitled to an extension of time. The contract in question
specified that the party seeking to argue that a force majeure event had
occurred was required to give notice to the other party in accordance
with the notice provisions.
The Court held that as the contract contained specific notice
requirements, notice of the force majeure event must comply with these
requirements. Simply providing information about the protests was not
sufficient.
This case provides a valuable reminder and warning that although notice
clauses are often overlooked, they will be interpreted strictly by the
Court. Where specific notice requirements are set out in a contract
these must be complied with. Failure to do so may result in significant
detriment to a company.
If you have a contractual employment issue you would like to discuss, please do give us a call on 01484 821 500 or email [email protected].