Liability in IT dispute

The High Court has held that a company was liable for damages for breach of a software development and supply agreement resulting in a net loss at about £1.4 million. The company had stopped working on the project to integrate supply chain systems because it considered that the project had altered substantially in scope, timescale and costs from the originally agreed terms. The client refused to agree a formal variation. The judge ruled that this amounted to a wrongful repudiation of the agreement which put the software developer in deliberate and wilful breach of contract. However the parties shared responsibility for delays and additional costs in the project and the judge criticised both parties’ behaviour.

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