D agreed to supply P with a computer system for administration of tax collection, with a clause limiting D’s liability for faults at £100,000 from D’s standard form contract. The defective system caused P loss greater than this and P 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 D 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.
