Data Direct Technologies Ltd v Marks & Spencer Plc

Data Direct Technologies Ltd v Marks & Spencer Plc

The court held that the words 'at the Customer’s option' in clause 7 of Product Schedule 8 refer to the right to cancel maintenance under clause 1(c) of the Maintenance Schedule. Maintenance is payable unless a valid cancellation notice is served. As the defendant did not serve such notice, it is liable for the maintenance fee.

Parties
Claimant: DataDirect Technologies Limited; Defendant: Marks and Spencer PLC
Jurisdiction
England and Wales
Judgment Date
26 January 2009
Procedural Posture
Civil (contractual Dispute) / Judgment After Trial of Preliminary Issue (construction of Contract)
Outcome
Judgment for the claimant
Legal Topics
Interpretation of Contract Terms, Software Licensing, Maintenance Agreements
Contract Law Commercial Law Interpretation of Contract Terms Software Licensing Maintenance Agreements

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Parties

DataDirect Technologies Limited

Claimant

Marks and Spencer PLC

Defendant

Procedural Posture

Civil (contractual Dispute) / Judgment After Trial of Preliminary Issue (construction of Contract)

Legal Issues

  1. 1 What is the effect of the words 'at the Customer’s option' in clause 7 of Product Schedule 8?
  2. 2 Is the defendant obliged to pay the maintenance fee if it did not serve a valid cancellation notice?

Ratio Decidendi

The court held that the words 'at the Customer’s option' in clause 7 of Product Schedule 8 refer to the right to cancel maintenance under clause 1(c) of the Maintenance Schedule. Maintenance is payable unless a valid cancellation notice is served. As the defendant did not serve such notice, it is liable for the maintenance fee.

Court Disposition

Judgment for the claimant

Orders

  • The claimant is entitled to the maintenance fee claimed under Product Schedule 8. The parties are to agree a minute of order to give effect to the judgment.