It goes without saying that any agreement should be clearly drafted. By that we mean that that the contents of that sheet of paper (or lever arch file!) should be easy to understand and record exactly what has been agreed between the parties. All well and good. However, the courts will look for more than that. They will want to see that the terms of an agreement do not operate so harshly that they go further than is necessary to protect a party’s legitimate business interests. This is illustrated in the 2019 case Medenta Finance Ltd v Hitachi Capital (UK) PLC [2019] All ER (D) 48 (Jun).

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