Do not rely on terms being implied

DURHAM TEES VALLEY AIRPORT v BMI (CA) [2010]

This case emphasises the need for drafting to be explicit if a particular commitment is important rather than simply relying upon terms to be implied. Courts will not impose an obligation on a contracting party to ‘act reasonably’ when performing a contract.

facts:

D reached a 10 year agreement with the airline B, for B to base a minimum of two aircraft at Tees Valley Airport and thereafter to operate a flying programme from the Airport. The value of the contract to D was dependent upon the volume of passengers since it earned a fee per passenger. In addition, the greater the number of passengers using D, the greater the revenue that would be earned from shops, restaurants, car parking and the like. It was therefore critical that B actively exploited its rights and promoted the Airport as a departure point.

decision:

points to note:

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