Some Sanity Returns To IT Disputes?

Key Point

• Claims for damages for breaches of section 52 of the Trade Practices Act can now be reduced because the claimant carelessly relied upon a misrepresentation or otherwise contributed to the loss.

Recent changes to the Trade Practices Act could shift the balance between acquirers and suppliers in IT projects if disputes arise.

The complex nature of IT implementations means that what happens before the contract is signed might not be particularly relevant to the parties during the project. Nonetheless, representations made at the start of the contract can amount to a breach of section 52 of the Trade Practices Act if they are misleading and deceptive and cause loss. We've looked before at the use of section 52 as an increasingly popular remedy in IT disputes (see our article in the last edition).