Case law update: be wary of time-barring your rights of contractual termination

DD Classics Ltd v Chen [2022] EWHC 1404 (Comm) provides a pertinent reminder that an innocent party may not have long to decide whether or not to exercise a contractual right of termination, depending on how the relevant contractual clauses are drafted, before the right expires. Therefore, in drafting a contractual right of termination, it is important if you are the party who would be entitled to the right to consider clarifying that such right persists and applies "at any time" after a trigger event, so that it is less likely to be lost by delay.

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