When can you stop performing under a contract, and when does doing so put you in breach? In Episode 5 of the Delaware Corporate Litigation Insights Podcast, hosts Francis G.X. Pileggi and Chauna Abner are joined by Delaware corporate and commercial litigator Sean Bellew to unpack the Court of Chancery’s recent decision in World Energy LLC v. Air Products and Chemicals, Inc. Sean is a trial lawyer who handles complex corporate, commercial and employment litigation matters, with an emphasis on corporate litigation in the Delaware Court of Chancery. He represents Delaware corporations, corporations doing business in Delaware and internationally and individuals in cases involving corporate control, trade secrets, corporate governance, statutory and contractual disputes, fiduciary duties, antitrust, securities, employment claims and injunction litigation.
The trio examines Delaware’s prevention doctrine, which may excuse a party’s nonperformance when the other side prevents it from fulfilling its contractual obligations. They discuss why that argument fell short in World Energy and what the decision teaches about clearly defining the sequence of payment and performance obligations. They also explore how smart contract drafting, forbearance agreements, and even everyday communications between parties can shape the outcome of a dispute long before anyone steps into a courtroom. Listen to the full episode for practical takeaways on drafting stronger agreements, documenting potential breaches to prepare for litigation, and protecting your position when a business relationship starts to unravel.