Legal updates: August 2023

Sophie Brookes and Debbie Shaw of Gateley examine High Court decisions on breach of warranty claims in Drax and Finsbury Food acquisitions, plus investment screening under the National Security and Investment Act 2021

Warranty claim notices: compliance with contractual requirements is key

The High Court has held that a buyer’s notice of claim for breach of warranty was invalid because it did not include reasonable details of the loss claimed by the buyer, nor how that loss was calculated.

This case is just one of several in recent years where warranty claims have failed due to claim notices not complying with content or service requirements in the relevant agreement. (Drax Smart Generation Holdco Ltd v Scottish Power Retail Holdings Ltd [2023] EWHC 412 (Comm))

Notice of warranty claims

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