The recent case of GPP Big Field LLP & Anor v Solar EPC Solutions [2018] provides a useful reminder in understanding the importance of contractual notice requirements.
Prosalia UK Lltd was engaged by GPP under five contracts to construct solar power generation plants. As Prosalia had become insolvent the contracts were assigned to Solar EPC Solution, the parent company.
The solar power generation plants had not been constructed in accordance with the timescale set out in the contracts and consequently GPP sought to claim against the parent company for delay damages.
Solar had raised the argument that, in relation to one of the contracts, the local residents had protested against the solar pants and claimed that this amounted to a force majeure event and claimed they were entitled to an extension of time. The contract in question specified that the party seeking to argue that a force majeure event had occurred was required to give notice to the other party in accordance with the notice provisions.
The Court held that as the contract contained specific notice requirements, notice of the force majeure event must comply with these requirements. Simply providing information about the protests was not sufficient.
This case provides a valuable reminder and warning that although notice clauses are often overlooked, they will be interpreted strictly by the Court. Where specific notice requirements are set out in a contract these must be complied with. Failure to do so may result in significant detriment to a company.
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