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ARTICLE · 24 NOVEMBER 2023

Case Update: What To Do When Your IT Provider Can't Deliver

Burges Salmon LLP
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The recent case of Topalsson GmbH v Rolls-Royce sets out some key considerations for customers when preparing and entering into agreements for IT services...

United KingdomMedia, Telecoms, IT, Entertainment
Nicole Simpson
Nicole Simpson

The recent case of Topalsson GmbH v Rolls-Royce sets out some key considerations for customers when preparing and entering into agreements for IT services

Introduction

In the case of Topalsson v Rolls-Royce the High Court dismissed the Claimants' (Topalsson) claim that a services agreement had been unlawfully terminated and upheld the Defendants (Rolls-Royce) counterclaim for damages for repudiatory breach. This case highlights key issues that customers and suppliers should be considering when preparing and entering into agreements, including ensuring that key requirements and milestones are clearly recorded and that termination notices are validly served.

Facts

In October 2019, Rolls-Royce contracted with software developer Topalsson to develop a new digital visualisation tool allowing prospective customers to see photo-realistic renderings of Rolls-Royce cars with different custom configurations, before purchasing "the Agreement".

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