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Cover: How to Review a Condition Subsequent That Ends Ongoing Obligations

How to Review a Condition Subsequent That Ends Ongoing Obligations

Log whether a running distribution deal ends on its own, which trigger is a real event, and whether the £9,150 invoice still survives.

•8 min read•Article
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Key takeaway in 30 seconds

Bronwen needs how to review a condition subsequent that ends ongoing obligations before a Friday side letter on a distribution deal running since 1 June 2026. Clause 14 tries to cut those rights automatically, without notice, on a licence, an insolvency step, or a legal change the supplier considers material. Log the trigger, the £9,150 invoice, and what still survives, then make the end elective or walk.

October 2026. Bronwen runs ops for a 16-person UK soap-dispenser brand in Margate. English law. Courts of England and Wales.

The packet — the papers you will actually perform — is the 1 June 2026 agreement, Clauses 9, 14, 18, and 20, the invoice, and the 1 October Slack.

For example, the 24-month term is already running. Minimum £8,400 a month. Invoice £9,150, due 30 October 2026. Side letter due Friday 9 October 2026.

Typical mistake: a one-day-late notification ended the contract on Tuesday, so the £9,150 and confidentiality die. In practice those are separate rows. The hidden risk is confirming an unnamed end.

“Will be terminated immediately” can be automatic. In Avondale [2023] EWCA Civ 641, “will” plus “immediately” left no gap for an election. Colour for Clause 14. Do not treat a one-day slip as that end.

Disclaimer: Checkory provides AI support, not legal advice. Consult a qualified lawyer for binding decisions.

How do you tell rights already running from a later cut?

Orders and the right to sell have run since 1 June 2026. Clause 14.1 ends them on a Condition Subsequent: a later event, not a gate that had to be met before the start.

The LexisNexis condition-subsequent glossary, checked 3 October 2026, says an existing right ends only if a specified future event occurs. “Any licence Supplier considers necessary” is not that event yet.

Workflow: 1 June 2026 → rights running → a later event in Clause 14 → the cut, only if the event is real. Pause if Slack treats a late filing as the event.

Comparison table: How do you tell rights already running from a later cut?
Running rights versus the later cut

Running rights and the cut

SentenceJobLog
1 June 2026Rights already runningSell rights in force
Clause 14.1Automatic, no noticeMechanism, not proof of the event
Clause 14.2(a)Licence Supplier considers necessaryNo register or date
Clause 14.2(b)Insolvent, any step, or opinionNot one court order
Clause 14.2(c)Legal change Supplier considers materialNo named rule
Clause 20Keeps confidentiality and accrued sumsFights 14.3

When to treat “without notice” as automatic?

Clause 14.1 says the rights terminate automatically and immediately, without any notice. Avondale read “will” plus “immediately” as no election window. A lease is not this agreement.

A notice-to-confirm uses the Clause 18 inbox, states the date, and attaches the extract or the order. It does not cure anything. Clause 14 tries to skip that inbox.

Do log “automatic, no notice” if those words stay. Don't call the side letter a cure. Pause if Slack is the only evidence. Red flag: no notice plus an opinion trigger. Treat that as a draft problem.

Workflow diagram: When to treat “without notice” as automatic?
Automatic end or a dated notice
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Typical mistake

Skipping Clause 18 because Clause 14 says “without any notice.” That skip is a claim, not a lapse date.

Which triggers count as licence loss, insolvency, or a regulatory drop?

An objective event is a fact a stranger could check, such as a cancelled licence with a number and a date. Clause 14.2(a) is whatever licence Supplier considers necessary. A one-day-late filing is not a named lapse.

Clause 14.2(b) stacks insolvency, “any step,” a statutory demand, and Supplier’s reasonable opinion of a material adverse change. Insolvency Act 1986 s.233B, checked 3 October 2026, is narrower. In a supply of goods or services to the company, a term that terminates the supply because of a relevant insolvency procedure ceases to have effect, to that extent.

Since 26 June 2020, subsection (2) lists a moratorium, administration, an administrative receiver, a voluntary arrangement, liquidation, a provisional liquidator, and a Companies Act 2006 s.901C(1) order. A statutory demand is not on it. An opinion about money is not on it.

Don't treat s.233B as voiding Clause 14.2(b). Exclusions exist. Administration or liquidation may switch it on. A statutory demand may not. Check the limb.

The LexisNexis resolutive-condition glossary, checked 3 October 2026, is the Scots label. In England and Wales say condition subsequent.

Clause 14.2(c) is any legal change Supplier considers material. That is an opinion, not the drop. Do name the rule. Don't treat “we consider it material” as the event.

What does the cut do to the £9,150 and Clause 20?

The invoice is £9,150, dated 30 September 2026, due 30 October 2026. Clause 14.3 extinguishes accrued sums and says nothing survives. Clause 20 keeps confidentiality, accrued payment rights, and governing law. The sentences fight.

In Triple Point [2021] UKSC 29 the Court held liquidated damages accrue until termination (Photo Production Ltd v Securicor [1980] AC 827). It does not decide the £9,150.

Muckle’s note on terminating a contract, checked 3 October 2026, keeps rights already arisen unless the paper releases them. It cites Involnert [2015] EWHC 2225 (Comm). Don't write the invoice off.

Do write both lines. Clause 14.3 extinguishes the £9,150. Clause 20 keeps it, and confidentiality. Avoid a letter that picks only 14.3.

Checklist board: Which triggers count as licence loss, insolvency, or a regulatory drop?
Licence, demand, or an opinion

Why does the 30-day cure stay on another page?

Clause 9 is a 30-day cure after written notice of a material breach. Slack wants it skipped because Clause 14 is “quicker.” That is a different problem.

Open the notice-and-cure review if the fight is that clock. Do not rebuild it.

If someone calls Clause 14 a condition that had to be satisfied before 1 June 2026, use the condition-precedent review. The agreement is already in force. For how long confidentiality lasts, use the survival-duration review. Stay until Clause 14.3 and Clause 20 stop fighting.

When do you make the end elective before you sign?

Verify the page before you sign. The success bar pauses Friday 9 October 2026. It names “without any notice,” an opinion trigger, or the £9,150 clash.

Make the end elective: the notice dates the event and attaches the evidence. Add a cure only for “considers necessary,” “reasonable opinion,” and “considers material,” and say what fact counts. Don't pretend s.233B is a cure clause.

Walk if it stays a hair-trigger: automatic, no notice, opinion words, and Clause 14.3 wiping £9,150 and Clause 20. Optional first-pass — a highlighter on this same file — marks the words. A human still opens Clause 14 against Clauses 9, 18, and 20.

Make elective

Pros

  • ✓The notice dates the event and attaches the extract.

Cons

  • ✗An election is not proof the end already happened.

Cure the soft events

Pros

  • ✓Opinion limbs get a named fact and a short window.

Cons

  • ✗A cure is not s.233B.

Walk if hair-trigger

Pros

  • ✓You do not confirm an end or write off £9,150.

Cons

  • ✗Walking is not a default finding.

Log the cut before Friday

1

Freeze the packet

1 June 2026 agreement, Clauses 9, 14, 18, and 20, the £9,150 invoice, and the 1 October Slack.

2

Write what is running

24 months from 1 June 2026. Minimum £8,400. No named public fact yet.

3

Mark the mechanism

Clause 14.1 is automatic, without notice. A confirming notice would use Clause 18.

4

Score each trigger

Licence and legal change are opinions. A statutory demand is outside the s.233B list.

5

Hold the invoice

£9,150 due 30 October 2026. Clause 14.3 extinguishes it. Clause 20 keeps it.

6

Pick a path

Make the end elective, cure only soft opinion limbs, or walk. Leave the 30-day cure aside.

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Success bar

One sentence pauses Friday: “without any notice,” an opinion trigger, or Clause 14.3 against Clause 20 on £9,150.

Frequently asked questions

Is termination automatic without notice?▼
Clause 14.1 says so. Log the mechanism. Do not log Tuesday until a named event and a date exist. A confirming notice still uses Clause 18.
How does this differ from a condition precedent?▼
A condition precedent is met before a right starts. These rights have run since 1 June 2026. Leave satisfaction and waiver on that other review.
Do accrued fees survive?▼
Do not write off the £9,150. Clause 14.3 extinguishes it. Clause 20 keeps accrued payment rights. Log both before the side letter.
Does a statutory demand fire the insolvency limb?▼
Clause 14.2(b) names one. Section 233B’s list does not. Check administration or liquidation against an opinion about money. Do not delete the whole clause.
Is a one-day-late notification a licence loss?▼
Not on these words. Clause 14.2(a) names no register and no date. Ask for the public entry before you confirm an end.
Can the side letter say nothing survives?▼
Not while Clause 20 keeps confidentiality and accrued payment rights. Reject a letter that copies Clause 14.3 and ignores Clause 20.

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Updated: October 3, 2026