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ARTICLE · 11 APRIL 2013

Failure To Perform Not Covered By Exclusion Clause

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

Charles Russell Speechlys LLP

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A discussion on the interpretation of an exclusion clause incorporated in an agreement which ran from five years from 1 April 2007 but ended unhappily in July 2010 with claims and counterclaims as to who was entitled to terminate.

United KingdomCorporate/Commercial Law

Kudos provided catering services to the Manchester Central Convention Complex. The agreement ran from five years from 1 April 2007 but ended unhappily in July 2010 with claims and counterclaims as to who was entitled to terminate etc. An initial point for consideration by the courts was whether the exclusion clause protected Manchester Central from a claim by Kudos for loss of profit. The exclusion clause 18.6 provided: "The Contractor hereby acknowledges and agrees that the Company shall have no liability whatsoever in contract, tort (including negligence) or otherwise for any loss of goodwill, business, revenue or profits, anticipated savings or wasted expenditure (whether reasonably foreseeable or not) or indirect or consequential loss suffered by the Contractor or any third party in relation to the Agreement ... ...".

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