Docklands Solicitor

Latest legal news from Docklands Solicitors, Kaslers Solicitors LLP.

Friday 14 January 2011

Commercial contracts

Proper Preparation Prevents Pathetically Poor Performance

In any large project, it is important to plan out exactly what needs to be done at every stage. Yet another case has come before the court were both sides were alleging that the other was responsible for the contract going wrong. It was for the design and information of a new computer system.

The system was not planned out in advance and the project started with the client still having to make some major decisions about how it should be developed. The client did not make those decisions promptly and indeed, changed its mind on occasion. The court described that conduct as a breach of contract but that it was not sufficiently serious to amount to a repudiatory breach-of-contract.

On the other hand, the contractor is indicated by their words and actions that they were completely fed up and wanted to get out of the contract. The court held that the contractor had committed a repudiatory breach-of-contract for which they should pay damages

For whatever reasons, the client decided not to upgrade their computer system but to modify their old one. The contractor had to pay for that, less the cost of the new system as finally agreed after all the variations. The court awarded well over £1 million

Labels: commercial contract repudiatory breach-of-contract