Posts Tagged ‘contract termination’

Excluding damages for wrongful contract terminations: AB v CD

January 8th, 2014

A recent UK case addressed an important contract issue for IT lawyers. Will a limit of liability clause that prevents recovery of damages for a wrongful termination of an agreement be a ground for granting an injunction to prevent the irreparable harm associated with the breach for which full damages cannot be recovered? Alternatively, will the liability exclusion be accepted as the bargain reached by the parties for such breaches and not be a basis for a finding of irreparable harm? The court in AB v CD [2014] EWHC 1 (QB) (03 January 2014) considered that the latter position was the law, but expressed doubts as to its correctness.