Getting out of a costly run-off PI agreement.
Q: I sold my brokerage three years ago with a stipulation in the sales contract that I would take out run-off professional indemnity cover for seven years. This is proving costly. Can I get out of the contract?
If you have entered into the contract, you have agreed the positionand are legally obliged to obtain cover however expensive it is.
If you fail to do so, the company that bought your business could sue you
for breach of contract. However, if it sued you for damages it would have
to prove a loss, which it might find difficult to establish.
It could sue you for specific performance of the contract but the court
might have sympathy for your position and you could argue it was an
implied term of the
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