Collateral Contracts Rule Explained
Client Alert | less than 1 min read | 12.30.05
In Mann v. U.S. (Dec. 7, 2005), the Court of Federal Claims rejected a broad reading of the rule that lost profits are not allowed under contracts collateral to the contract actually breached, explaining that when the lost profits directly relate to the subject of the contract they are recoverable, even if they would have required a transaction with a third party. In this breach of a lease agreement, assuming adequate proof, the contractor is able to recover the lost profits he would have made from releasing the property, as well as certain out-of-pocket costs to improve the property.
Insights
Client Alert | 4 min read | 08.13.26
Supreme Court Confirms Contractual Loss of Bargain Without Repudiatory Breach
English law has long treated the choice between terminating for repudiatory breach and exercising a contractual termination right as consequential. Under the Financings[1] causation principle, a party exercising a contractual right for a non-repudiatory breach could recover losses accrued to the date of termination — but nothing more. Loss of bargain was out of reach unless the breach went to the root of the contract. A practical workaround, confirmed in Lombard,[2] was to designate the relevant obligation as a condition, elevating any breach to repudiatory status, but that device carries significant strategic risk if the termination is later found to have been wrongful.
Client Alert | 7 min read | 08.12.26
Developments in Canadian Investment Treaty Practice: New FIPA Between Canada and UAE in Force
Client Alert | 6 min read | 08.11.26
Client Alert | 1 min read | 08.10.26
