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Artpower Ltd v Bespoke Couture Ltd

The judge had erred in his interpretation of a termination clause in an agreement and in holding that the agreement was automatically terminated by a party’s breach as the party that had not breached the agreement had to take positive steps to bring the agreement to an end.

10 November 2006

The appellants (X) appealed against the court’s determination as to the meaning of a termination clause in a licence agreement. The respondent (B) had entered into an agreement with X that provided for X to produce a range of menswear based on sketches by B and using B’s trade marks. Clause 9.3 of the agreement provided for either party to terminate the agreement with immediate effect if the other party had committed a material breach that had not been remedied within 30 days of receipt by that party of a written notice identifying the breach and requiring its remedy. In other proceedings between the parties, X had given cross-undertakings in damages and had been ordered to pay £200,000 forthwith to B. X failed to pay the sums due. B sent a letter informing X, that as it had not complied with the agreement, it was terminated forthwith. X contended that B had not given the necessary notice to terminate the agreement. The court was required to determine, inter alia, the meaning o...

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