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St Albans City & DC v International Computers [1996]

Facts

  • Defective computer program dispute, International Computers Limited its liability to £100,000

Issue

  • Could damages be limited by a damage limitation clause, or was the clause defective as an unfair contract term within the meaning of the Unfair Contract Terms Act 1977?

Decision

  • Unfair contract term present

Reasoning

  • Section 3 of UCTA applied, as the limitation clause was a standard term which had not been negotiated
  • ‘Goods’ are things told on tangible media, such a software sold on a disc
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