News: Contract Law
Contract law training: Firms can seek contractual and common law damages
20 February 2009
Businesses terminating a contract following a fundamental breach can retrieve the money spent on this through its terms and conditions and still seek damages in the courts, which could affect contract law training.
A judgment, which was given in the court of appeal, held that Gearbulk Holdings could sue for common law damages in addition to the money it had already paid, Out-Law.com reports.
Richard Twomey, a dispute resolution specialist, states that parties seeking repudiatory damages are pursuing the sum which positions them where they would have been if the contract had been performed.
He asserts that this could be more than they are able to recover under the terms and conditions of the contract.
Mr Twomey tells the news provider: "Companies are sometimes wary to terminate the contract and seek to enforce the contractual remedies because they fear prejudicing their ability to claim damages at common law."
In other news, contract law training has been highlighted by BT's decision to sue Essex County Council following the local authority's decision to cancel an IT arrangement.
