The appellant in this matter appealed against a decision dismissing his claim for payments from the respondent company under a compromise agreement. He was the chief executive and director of a company when he became subject to allegations of financial irregularity. A compromise agreement was drawn up whereby he agreed to leave according to its terms, namely that he would receive half a million pounds. However, his employers inserted a clause into this agreement to the effect that he would not receive this payment if circumstances came to light which would have constituted a Repudiatory Breach Of His Contract. In the event, the employers refused to pay the money, as breaches of this kind were judged to have occurred. The appellant argued that the clause was not a condition precedent to the payment but was only an ordinary condition giving the employer an action in damages once the amount had been paid. The Court of Appeal found against the appellant. They held that on the wording of the agreement, the clause was clearly a condition precedent and the right to payment had been lost accordingly by the employee. In coming to this conclusion, Sedley LJ recalled the words of Stephen J in Re Castioni when he stated ‘It is not enough to produce something which a person reading in good faith can understand; it is necessary to produce something which a person reading in bad faith cannot understand.