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Ministry Of Sound Ltd V. World Online Ltd. Notes

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Ministry Of Sound Ltd V. World Online Ltd. Revision

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MINISTRY

OF

SOUND LTD V. WORLD ONLINE LTD

FACTS The claimant ("Ministry of Sound"), is one of a group of companies operating nightclubs under that name. The defendant ("World Online") is an internet service provider which in February 2000 wished to attract custom by associating itself with the Ministry of Sound brand. The agreement was to last for two years. One of its main features was that Ministry of Sound was to package and distribute "Access CDs" which had been produced by World Online. Another was that it required Ministry of Sound to maintain on its website a branded Internet service ("the Branded Service"), based in part on services provided by World Online, which was to be available via the Access CDs to end users who had contracted with World Online. In the first six months of the Agreement, World Online produced some 650,000 Access CDs but then, according to Ministry of Sound's solicitors' letter of 5th September 2001, stopped providing them in August 2000, saying however that another Access CD would be produced for the second year. This is not disputed in the later correspondence. World Online continued to pay the amounts due under the agreement, although not always promptly. On 22nd August 2001, a company called Tiscali UK Limited wrote on behalf of World Online to Ministry of Sound, alleging substantial breaches of the agreement based on assumptions that it required Ministry of Sound to incur specific levels of expense, account for its expenditure and evidence its promotional activities, and requiring such breaches to be remedied within 30 days. On these facts, Ministry of Sound sought summary judgment for the last instalment of £200,000 on the simple ground that, World Online's repudiation not having been accepted, the agreement remained enforceable in accordance with its terms. World Online did not allege in its Defence that it was entitled to terminate the agreement because of Ministry of Sound's breach. Its position was summarized in paras. 11 and 13 of the Defence, where it is submitted the obligation to make the staged payments "did not arise until and/or was related to Ministry of Sound's performance of its obligations … and/or did not survive the release … from its

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