[2025] EWHC 1160 (TCC)
Technology and Construction Court

[2025] EWHC 1160 (TCC)

Fecha: 15-May-2025

Effect of an indefinite obligation to supply on Avanti

Effect of an indefinite obligation to supply on Avanti

128.

Avanti says that such an obligation would in fact be unworkable because it would mean that Avanti could be held to supplying services to EE even if the satellites originally specified were now unusable because their operating lives had expired, unless EE was prepared agree a change. EE’s answer to this is to say that the parties would no doubt act commercially in such a case to avoid this happening and come to an agreement. Further, Mr Lavy KC contemplated the possibility that there may be implied on the part of Avanti a right to terminate on reasonable notice, or even that the doctrine of frustration might apply. But as with the idea of an indefinite contract for services to be provided for a reasonable charge, the idea that a contract of this kind would be terminable on reasonable notice seems to me to be commercially very unlikely, where there are detailed express provisions for when it can be terminated. So I do think that Avanti has a point here.