CONTRACTUAL DISPUTES: LESSONS FROM 2025
As 2026 approaches, contractual risk continues to dominate the disputes landscape for large corporates.
Our 2026 Litigation Risk Report, which surveyed 360 senior in-house lawyers across six major sectors, found that almost one in three respondents had been involved in disputes rooted in alleged breaches of contract over the last 12 months.
This data is a striking reminder that, amid growing geopolitical and regulatory uncertainty, we cannot lose sight of the fact that contracts remain at the heart of where corporate risk so often crystallises.
Across all sectors surveyed, the data also shows that businesses are increasingly turning to contracts as a primary tool of risk management. When asked what measures they had adopted, or planned to adopt, to mitigate the heightened litigation risk arising from geopolitical factors, more than half reported updating their standard contract terms for international suppliers, with a further 39 percent planning to do so.
In parallel, 34 percent had already renegotiated their commercial agreements with international suppliers, and another 38 percent intended to follow suit.
The prevalence of contractual disputes, coupled with the increasing amendment and negotiation of contractual terms to manage wider risks, makes it critical to understand how courts are interpreting and enforcing those agreements.
Against that backdrop, five key decisions from 2025 illustrate how English courts continue to test fundamental contractual principles. Taken together, these decisions trace the lifecycle of a contract, covering formation, interpretation, implied terms, good faith obligations and termination, and offer practical guidance for managing contractual risk in 2026 and beyond.
Jan-Mar 2026 issue
Shoosmiths