Court of Appeal Agrees that Termination Clause is Unenforceable

NJ Appellate Division Awards Specific Performance After Seller Allowed Buyer Over Nearly Seven Years to Obtain Municipal Approval of Redevelopment Plans - Riker Danzig

What You Need to Know Courts will enforce good faith obligations even when contracts allow termination. The seller couldn't suddenly terminate after allowing the buyer to spend nearly seven years and considerable resources pursuing municipal approvals with the seller's knowledge and support. Actions can waive contractual rights and create estoppel. By permitting Oclar to continue […] The post NJ Appellate Division Awards Specific Performance Aft…

Court of Appeal Agrees that Termination Clause is Unenforceable

The recent Court of Appeal decision in De Castro v. Arista Homes Limited follows the current trend of courts frequently striking down termination clauses in employment contracts. In that decision, the Court of Appeal sided with the employee and upheld an award of damages that was far greater than the compensation set by the employment contract. This should serve as another reminder to employers of the significant liabilities they may face in a w…