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NetTV decision over liability for deliberate repudiatory breach considered by High Court together with right of first refusal, whether rights are waived while negotiating following material breach and very narrow interpretation of limit on liability clause – AstraZeneca v Albemarle International, High Court

20 July 2011 | Paul Gershlick

When drafting a contract, parties often attempt to exclude or limit their liability by inserting a particular clause into the contract. Such a clause is known as an exclusion clause. Certain forms of exclusion...

Tags on this discussion: agreement agreements breach breach of agreement breach of contract clause commercial commercial agreement commercial agreements Commercial contract commercial contracts commercial law consequential loss contra proferentem contract contract breach contract termination contracts damages direct loss exclusion clause exclusion of liability first refual fundamental breach heads of loss High Court indirect loss liability limitation limitation on liability loss loss of profits losses material breach NetTV pharma pharmaceutical remedies remedy repudiatory breach right of first refusal serious breach supply agreement supply agreements supply contract supply contracts terminate termination test for repudiatory breach waiver

Court of Appeal rules that entire agreement clause did not exclude liability for misrepresentation and exclusion of set-off was unenforceable – AXA v Campbell Martin, Court of Appeal

21 March 2011 | Mark Weston Comments Off

AXA appointed agents on its standard form contract to sell its financial products. The contract gave AXA rights to claw back commission if customers cancelled. AXA sought to enforce those provisions. The...

Tags on this discussion: agency agency agreement agency agreements agency contract agency contracts agreement agreements B2B business-to-business collateral warranty commercial agreement commercial agreements Commercial contract commercial contracts contract contracts Court of Appeal entire agreement entire agreement clause exclusion exclusion of liability fair fairness fraudulent misrepresentation High Court implied implied term interpret interpretation interpretation of contract misrepresentation negligent misrepresentation promise reasonable reasonableness set-off terms UCTA undertaking unenforceable unfair unfair contract terms unfair contract terms act Unfair Contract Terms Act 1977 unreasonable

Another case shows that many types of economic loss are direct and do not fall within exclusion of liability for indirect losses – McCain Foods v Eco-Tec, High Court

4 February 2011 | Mark Weston

This case involved the supply of a system by Eco-Tec to McCain. McCain wanted the system to remove hydrogen sulphide so that it could generate heat and electricity. The system was defective. McCain claimed...

Tags on this discussion: agreement agreements breach breach of contract cap on liability commercial commercial agreement commercial agreements Commercial contract commercial contracts commercial law consequential loss damages direct loss exclusion exclusion of liability High Court indirect loss liability limitation on liability loss loss of business loss of contracts loss of goodwill loss of profits loss of revenue losses supply supply contract supply of goods supply of goods and services supply of service supply of services third party losses UCTA unfair contract terms unfair contract terms act Unfair Contract Terms Act 1977

Industry standard? Must be reasonable then – Röhlig (UK) Ltd v Rock Unique Ltd, Court of Appeal

28 January 2011 | Simon Weinberg | 1 comment

The Court of Appeal has ruled that clauses in the standard trading terms of a particular trade industry body were reasonable under the Unfair Contract Terms Act 1977 (UCTA). The ruling upholds the decision...

Tags on this discussion: breach breach of contract commercial commercial agreement commercial agreements Commercial contract commercial contracts commercial law contract contract law contracts court Court of Appeal exclusion exclusion of liability High Court illegal liability limitation limitation on liability limitation period limitation periods reasonable reasonableness set-off standard terms standard terms and conditions standard trading terms summary judgment Terms & conditions UCTA unauthorised unfair contract terms unfair contract terms act Unfair Contract Terms Act 1977 unlawful unreasonable

Public body ordered to disclose IT contract against its wishes

30 September 2010 | Paul Gershlick

The Department of Work and Pensions has been ordered by the Information Tribunal to disclose most of the details of an IT contract. Atos Origin had been the only bidder for the DWP’s contract. After...

Tags on this discussion: B2G benchmark benchmarking business to government cap on liability commercial commercial agreement Commercial contract commercial contracts commercial law commercial prejudice confidential confidential information disclosure exclusion of liability FOIA freedom of information freedom of information act Information Tribunal IT IT contract liability limitation on liability public authority public body public interest public sector publication Software trade secret

Series of cumulative breaches can amount to fundamental breach, and Court of Appeal shows narrowness of what counts as indirect losses – GB Gas v Accenture, Court of Appeal

13 August 2010 | Mark Weston

GB Gas entered into an agreement with Accenture for Accenture to design, supply, install and maintain a business-critical IT system, including billing. The agreement defined a ‘Fundamental Defect’...

Tags on this discussion: breach breach of contract bugs business-critical commercial consequential loss contract contract law contracts Court of Appeal design direct loss exclusion of liability fundamental fundamental breach indirect loss installation IT IT contract IT project IT system liability limitation on liability loss of business loss of contracts loss of profits loss of revenue losses maintenance material material breach reasonable reasonable endeavours remedy repudiatory breach serious serious breach supply supply agreement supply contract support and maintenance third party third party losses warranty

Software contract clause limiting warranty to operating documents that had not been provided was unreasonable – Kingsway Hall v Red Sky, High Court

14 May 2010 | Mark Weston

Red Sky supplied booking and billing software to a busy hotel, Kingsway Hall. ‘Entirety’ was a standard system, but Kingsway soon had trouble with it. The system failed to show room availability, group...

Tags on this discussion: breach breach of contract contract contract law contracts damages exclusion of liability fit for purpose IT limitation on liability loss of goodwill loss of profits reasonable reasonableness sale of goods sale of goods act satisfactory quality Software supply of goods and services act term termination Terms & conditions UCTA unenforceable unfair contract terms act warranty

Franchisor liable for negligent advice to franchisee despite disclaimers and exclusions of liability – MGB Printing v Kall Kwik, High Court

20 April 2010 | Mark Weston

This case concerned MGB’s purchase of one of Kall Kwik’s existing printing services franchises. In doing so, MGB asked Kall Kwik about the cost of re-fitting, which Kall Kwik advised that it should...

Tags on this discussion: breach of contract contract contract law contracts disclaimer exclusion of liability franchise agreement franchisee Franchising franchisor High Court loss loss of profits negligence tort

Honest belief of something means party could not be deemed to have made fraudulent misrepresentation – FoodCo v Henry Boot, High Court

18 March 2010 | Mark Weston

HB commissioned a third party to provide a report on likely traffic and footfall at a new motorway service station. HB used that report to provide a brochure to attract tenants. The numbers turned out...

Tags on this discussion: breach of contract contract contract law contracts entire agreement clause exclusion of liability Fraud fraudulent misrepresentation High Court liability

Liability cap in contract includes contractual interest but excludes statutory interest – Markerstudy v Endsleigh, High Court

5 March 2010 | Mark Weston

Endsleigh provided certain administration and claims handling services to Markerstudy. Markerstudy claimed for losses resulting from Endsleigh’s alleged overpayment in relation to the claims. There was...

Tags on this discussion: cap on liability consequential loss contra proferentem contract contract law contracts direct loss exclusion of liability High Court indirect loss liability limitation on liability loss of business loss of goodwill loss of profits loss of revenue UCTA unfair contract terms act

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Latest news and views tagged exclusion of liability

Court of Appeal rules that entire agreement clause did not exclude liability for misrepresentation and exclusion of set-off was unenforceable – AXA v Campbell Martin, Court of Appeal

Another case shows that many types of economic loss are direct and do not fall within exclusion of liability for indirect losses – McCain Foods v Eco-Tec, High Court

Industry standard? Must be reasonable then – Röhlig (UK) Ltd v Rock Unique Ltd, Court of Appeal

Public body ordered to disclose IT contract against its wishes

Series of cumulative breaches can amount to fundamental breach, and Court of Appeal shows narrowness of what counts as indirect losses – GB Gas v Accenture, Court of Appeal

Software contract clause limiting warranty to operating documents that had not been provided was unreasonable – Kingsway Hall v Red Sky, High Court

Franchisor liable for negligent advice to franchisee despite disclaimers and exclusions of liability – MGB Printing v Kall Kwik, High Court

Honest belief of something means party could not be deemed to have made fraudulent misrepresentation – FoodCo v Henry Boot, High Court

Liability cap in contract includes contractual interest but excludes statutory interest – Markerstudy v Endsleigh, High Court

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