Pegler Ltd v. Wang (UK) Ltd [2000] EWHC Technology 137 (25th February, 2000)

Pegler Ltd v. Wang (UK) Ltd [2000] EWHC Technology 137 (25th February, 2000)

Wang was in admitted breach of contract for failing to supply the agreed system and services. The exclusion and limitation clauses relied on by Wang did not exclude liability for the breaches in question, particularly as they did not expressly cover non-supply or delay in supply, and did not apply to professional services such as project management and consultancy. The right to damages under clause 43(a)(i) of Schedule B was not limited by the exclusion clauses, as the special conditions took precedence. The Unfair Contract Terms Act 1977 applied to the exclusion clauses, which were not shown to be reasonable by Wang. Rectification of the contract as sought by Wang was refused for lack of...

Citation
[2000] EWHC Technology 137
Parties
Claimant: Pegler Ltd; Defendant: Wang (UK) Ltd
Jurisdiction
England and Wales
Procedural Posture
Commercial Contract Dispute / Judgment After Trial on Assessment of Damages
Outcome
Judgment for the claimant (Pegler).
Legal Topics
Breach of Contract, Exclusion Clauses, Rectification, Damages, Unfair Contract Terms Act 1977, Reasonableness of Contract Terms
Contract Law Commercial Law Breach of Contract Exclusion Clauses Rectification Damages Unfair Contract Terms Act 1977 Reasonableness of Contract Terms

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Parties

Pegler Ltd

Claimant

Wang (UK) Ltd

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment After Trial on Assessment of Damages

Legal Issues

  1. 1 Whether Wang breached its contract with Pegler for supply of computer hardware, software, and services; Whether exclusion and limitation of liability clauses in the contract are effective; Whether the contract should be rectified as sought by either party; Whether the Unfair Contract Terms Act 1977 applies to the exclusion clauses and, if so, whether those clauses are reasonable; Assessment of damages for Pegler's losses arising from Wang's breaches.

Ratio Decidendi

Wang was in admitted breach of contract for failing to supply the agreed system and services. The exclusion and limitation clauses relied on by Wang did not exclude liability for the breaches in question, particularly as they did not expressly cover non-supply or delay in supply, and did not apply to professional services such as project management and consultancy. The right to damages under clause 43(a)(i) of Schedule B was not limited by the exclusion clauses, as the special conditions took precedence. The Unfair Contract Terms Act 1977 applied to the exclusion clauses, which were not shown to be reasonable by Wang. Rectification of the contract as sought by Wang was refused for lack of...

Court Disposition

Judgment for the claimant (Pegler).

Orders

  • Wang to pay damages to Pegler for admitted breaches of contract.
  • Rectification of the contract as sought by Wang refused.