E-suppliers/IT: terminating on counterparty insolvency suppliers

New laws to be brought into force next year will curtail the ability of some IT suppliers to terminate their agreement with counterparty where the customer becomes insolvent.

The Enterprise and Regulatory Reform Act 2013 (ERRA) includes, among a host of other new laws, a provision allowing the secretary of state to widen the scope of section 233 of the Insolvency Act 1986.

Section 233 provides that suppliers of gas, water, electricity and telecoms must continue to supply those utilities. The only condition on continuing supply that they may impose on the insolvency office holder is that he personally guarantees payment of future supplies. The legislation expressly prevents such a supplier from imposing as a condition of future supply a requirement that all arrears be paid in full…

If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.

Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

  • Money 317

    Crunch boom

    Financial disputes are starting to dominate the English courts as the long-awaited fallout from the downturn finally comes to town

View more analysis from The Lawyer

Overview

5 New Street Square
London
EC4A 3TW
UK
http://www.taylorwessing.com

Turnover (£m): 228.00
No. of Lawyers: 860
No. of Lawyers (Asia Pacific): 79
Offices (Asia Pacific): 3

Jobs