The pitfalls of voluntary rectification (MV Promotions v Telegraph Media Group)


Publication Date:
29 May 2020


Description:

Commercial analysis: The court in MV Promotions considered a part 8 claim for a declaration of construction or, alternatively, rectification. The relevant mistake was as to the identity of one of the contracting parties. The remedy sought would have tax consequences, but the contracting parties had not been motivated by those consequences at the time of contracting. The court rejected the construction claim and declined to exercise its discretion to grant rectification, despite the preconditions for rectification have been made out. This case provides a stark illustration of the need for caution when seeking to remedy issues voluntarily, particularly in cases where tax is a concern. 

 

MV Promotions Ltd and another v Telegraph Media Group Ltd and another [2020] EWHC 1357 (Ch) (29 May 2020) 

 

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