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1763557911

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https://blog.fromcounsel.com/drax-spa-reasonable-detail-2024

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FC Case Feature: SPA/Warranties

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In Drax Smart Generation Holdco Ltd v Scottish Power Retail Holdings Ltd [2024] EWCA Civ 477, the Court of Appeal considered whether a notice of claim met the requirement in a share purchase agreement (SPA) for the notice to provide 'reasonable detail' of the nature of the claim and amount claimed. The court unanimously allowed the appeal brought by the buyer, finding that there was nothing in the language or commercial purpose of the notice of claim clause which required the buyer to set out in the notice of claim that the damages claimed would be based on the difference in value of the shares in the company. Background Drax Smart Generation Holdco Ltd (Buyer) acquired the shares in a company now known as VPI Power Ltd (Company) from Scottish Power Retail Holdings Ltd (Seller) pursuant to an SPA. A key asset of the Company was a real estate site in Kent (Damhead Creek II), which was a po...

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1763557911

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