Commercial contracts - renunciation, affirmation, and guarantees (Chugga Chugg v Privinvest)

In a recent article for Lexis Nexis, Katie Chandler and Natalia Faekova discuss the recent decision in Chugga Chugg Pty Ltd v Privinvest Holding Sal [2025] EWHC 585 (Comm). 

This judgement provides essential guidance on contract renunciation, affirmation, and interpretation of guarantee clauses. The article provides practical insights into how commercial negotiations and conduct affect contractual rights and obligations.  

The High Court clarified the position on when expressing a desire to terminate falls short of renunciation and what conduct can amount to affirmation of a contract. The judgment also offers important insights on the interpretation of guarantee clauses, particularly regarding 'contested' breaches in insolvency contexts.

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This article has been published by LexisNexis.