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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...
High Court says businesses can only claim loss of value if they are no longer in business – MMP GmbH V Antal International Network Limited, High Court
The High Court has ruled that, when suing for breach of contract, a company can only make a claim for damages based on loss of value if it has been put out of business by the breach. Otherwise, normal...
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...
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...
Franchisor liable for negligent advice to franchisee despite disclaimers and exclusions of liability – MGB Printing v Kall Kwik, High Court
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...
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...