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Law Cases
Contract Law Cases
Unfair Terms Cases

St Albans DC v International Computers [1996] 4 All ER 481

Country:
United Kingdom
By Oxbridge Law Team
Nourse LJ

  • Defendant agreed to supply Plaintiff with a computer system for administration of tax collection, with a clause limiting Defendant’s liability for faults at £100,000 from Defendant’s standard form contract.

  • The defective system caused Plaintiff loss greater than this and Plaintiff sued for the full amount of damages, which CA awarded.

  • The limitation clause was unreasonable given that the potential and actual losses were far greater than this, and Defendant had insurance of over £50m. 

Nourse LJ

  • He applies Lord Bridge’s dictum above and can find no reason for overturning the trial judge’s finding that the term was unreasonable.

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