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Exclusion Clauses: Beyond reason

Juli Lau examines the pitfalls of standard terms and conditions ‘The initial fault lay with the seller in selling goods with a visual defect, and a provision which transfers all the risk of liability to the buyer does not satisfy the statutory test of reasonableness.’Exclusion and limitation clauses often feature among the key issues in …
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Call-Off Contracts: Doctors in the frame

Patrick Parkin and John Houlden have news on the enforcement of framework agreements ‘Call-offs under framework agreements must be conducted according to the terms of the framework agreement (and ultimately the original ITT).’Public authorities commonly use framework agreements to put in place a roster of preferred suppliers from whom they can quickly call off supplies …
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Drafting: Feeling excluded

Geraldine Elliott and Elizabeth Wiggin provide a helpful reminder on the incorporation of exclusion clauses ‘When considering injunctive relief, the question should be asked whether it is just in all the circumstances for a party to be “confined to his remedy in damages” by virtue of an exclusion clause.’Very often, it is not what the …
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Contract: Failing foundations – the legal approach to contractual ambiguity

Jenny Salmon reports on MT Højgaard A/S v E.ON and the lessons to be learned ‘Any warranty as to the length of operational life should have been expressly set out in the contract… and not buried in the technical requirements.’Contracts are the foundation-stone for the legal rights and responsibilities of the parties to any construction …
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Tendering: Keeping score

Nusrat Zar and Rachel Lidgate investigate a recent judicial assessment of a tender evaluation ‘This is the first time that an English court has set aside an authority’s decision to award a contract pursuant to the Public Contracts Regulations 2006.’In Woods Building Services v Milton Keynes Council [2015], the court held that a disappointed bidder …
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Litigation: The devil in the detail

Jenny Beresford-Jones summarises the implications of the Small Business, Enterprise and Employment Act 2015 for procurement ‘New regulations under the Small Business, Enterprise and Employment Act 2015 look set to go beyond anything required at EU level.’It is now several months since the Public Contracts Regulations 2015 (PCR 2015) came into force, implementing the new …
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Update: Caravan parks and rainy days

Chris Bryden, Agata Patyna and Matthew Shaw evaluate a recent Supreme Court decision dealing with the interpretation of contracts ‘The High Court agreed with the buyers’ interpretation, but the Court of Appeal overturned it and entered summary judgment in favour of the respondent bank.’ When dismissing the appeal of the lessees in the Court of …
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Regulation: Feeling your way

Rory Ashmore assesses the impact of the new light touch regime ‘Light touch regime contracts will benefit from far greater flexibility than those whose procurement is fully regulated under the Public Contracts Regulations 2015.’On 9 March 2015, the Cabinet and Crown Commercial Service (CCS) issued guidance on a new ‘light touch regime’ (LTR) for the …
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Contract: Take the money and don’t run

David Sawtell considers how far good faith can apply to repudiatory breach ‘If the innocent party has no other reason to affirm the contract than to maximise its damages, the court might scrutinise its claim.’If a party is in serious breach of a contract, the so-called ‘innocent’ party needs to know whether or not it …
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Disclosure: Finding the missing link

Deborah Ramshaw reports on a recent judgment highlighting the pitfalls of disclosure ‘The court found that the council had sought a potentially unfair advantage through its attitude to disclosure; in particular the court found that it was unfair for the council to “pick and choose what documents they provide and when, as it suits them”.’The …
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