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ARTICLE · 07 FEBRUARY 2011

Chasing The Money

DMH Stallard LLP
DMH Stallard LLP
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DMH Stallard LLP

DMH Stallard LLP

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Most contracts are stuffed in a drawer after signature and only see the light of day again when things go wrong, and technology contracts are no different.

United KingdomMedia, Telecoms, IT, Entertainment

This article was originally published on 1 May 2009

Most contracts are stuffed in a drawer after signature and only see the light of day again when things go wrong, and technology contracts are no different. At that point, everyone turns to the liability clause to work out how much it will cost them.

It is common practice for technology suppliers to exclude liability for "consequential losses" when negotiating contracts. However, it can be difficult to quantify such losses and it is important to get to grips with this, particularly in a recession when more people are willing to litigate to secure (or prevent) a payout.

Most businesses know that a total exclusion of liability is probably not enforceable but that they might be able to limit their liability. It is well established that a business may be entitled to receive compensation for:

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