(BAILII entry avilable here)
The Court of Appeal considered whether a clause conferring daily
liquidated damages for delay applied to the particular factual
circumstances and, if so, what event brought the liquidated damages
to an end.
This was a dispute over the purchase of an IT system. Phase 1 of
the project was completed 149 days late and further milestones were
not completed at all. Ultimately the supplier was held to be in
repudiatory breach for abandoning the contract, allowing the
customer to terminate.
The contract included liquidated damages for delay which were
expressed as accruing:
"…at the rate of 0.1% of undelivered work per day of
delay from the due date for delivery up to the date [the customer]
accepts such work…".
