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BSkyB Wins Dispute - Fraudulent Misrepresentation
Southend-based solicitors firm, BTMK has warned businesses to be careful of what their salesmen say, in light of a recent court case. The court looked at a perennial issue of salesmen conning customers regarding what was on offer, in order to induce them to sign the contract.
Saul Caplan, commercial litigation partner of BTMK says: “In most customer and business to business contract negotiations, the issue of enforceability of clauses excluding and limiting liability raises its ugly head.
“Most of those involved with contract drafting know that it is not possible, under English law to exclude liability for fraudulent misrepresentation.“
In a long awaited High Court Judgment in January 2010, which runs to over 400 pages, a judge has held that exclusion clauses are void and that BSkyB has won its fight against EDS over an allegedly failed IT system. The Customer Relationship Management system was defective in the buyer’s view and BSkyB’s legal costs between 2007 and 2009 alone ran to £40m.
One of the witnesses for EDS claimed to have an MBA from Concordia College and described the building where he had attended lectures. BSkyB’s QC produced a certificate in court which the main witness accepted as from that organisation.
However, the QC then proved that he had bought the certificate online for his dog Lulu. The college did not exist and the witness lost his job the day after he gave evidence. However, it is the detailed examination of legal issues on exclusion of liability which are of interest in the judgment.
When did you last have your clauses excluding liability in contracts checked by a lawyer? Are they reasonable enough to be valid under the Unfair Contract Terms Act 1977? Do you ensure you do not exclude liability for fraud? If you do exclude it, the entire clause can be void.
To find out more about how we can help you, please contact us on 01702 339222 or at enquiries@btmk.co.uk
