(1) Invalidity of a contract under the Swedish doctrine of assumptions
(2) Liability for damages following the invalidity of a contract by virtue of
the doctrine of assumptions.
(1) Where an assumption relating to certain facts has been decisive for
party A for entering into an underwriting agreement with party B and where
party B must have been aware of the assumption and its importance to
party A and where such assumption is created by a promise from party B
and where such promise is broken by the same party without a valid excuse
then party B must bear the risk for the failure of party A’s assumption and
the failure of such assumption may render the contract invalid.
(2) Failure to fulfil a commitment outside the invalidated contract may
constitute ground to claim damages (culpa in contrahendo).
Claimants: 1. PC, Parent Company (Sweden)
2. The F Company, Underwriter (Republic of Panama)
Respondent: The Respondent, Underwriter (British West Indies)
Subsidiary of Claimant no 1: TC, the Target Company (State of Delaware,
Shareholder of Claimant no 1: SPC, Shareholder of Parent Company
Place of arbitration:
Language of the proceedings: