Wrongful dismissal: Damages awarded for loss of salary increases

The service contract of a company chief executive imposed a contractual obligation on his employer to review and provide an annual upward adjustment in salary, holds the High Court in Clark v BET plc and another 16.10.96 High Court. Although the contract gave the employer absolute discretion over the amount (if any) of the increase, it would have been in breach of contract if it had capriciously or in bad faith exercised that discretion to award no increase whatsoever.