Latest news and views tagged limitation on liability
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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...
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
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...
Industry standard? Must be reasonable then – Röhlig (UK) Ltd v Rock Unique Ltd, Court of Appeal
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...
Public body ordered to disclose IT contract against its wishes
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...
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
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’...
Software contract clause limiting warranty to operating documents that had not been provided was unreasonable – Kingsway Hall v Red Sky, High Court
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...
Liability cap in contract includes contractual interest but excludes statutory interest – Markerstudy v Endsleigh, High Court
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...