By Jeremy Holt; Jeremy Newton; Sarah Ellacott; Andrew Katz; Jean Morgan; All authors

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No more, no less. 13 2 Systems Procurement Contracts JEREMY NEWTON Terms like ‘computer contract’ or ‘systems procurement contract’ cover a broad range of commercial transactions, from the purchase of a single CD-ROM from a high street retailer through to multimillion pound agreements for consultancy or outsourcing services. This chapter outlines the legal issues that need to be addressed in any contract of this type, using examples from actual case law to illustrate the kinds of dispute that commonly arise in relation to systems procurement, and discusses how the process of drafting and negotiating the agreement can be used to prevent some of the most common problems.

There should be no need for either side to litigate and changes required should be dealt with through a change control procedure. In some ways the process of creating the SLA is as valuable as the agreement itself. SLAs can be between different businesses or between different parts of the same organization (such as the IT department and its users). Facilities Management Agreements, Software Maintenance Agreements and Managed Data Network Agreements are all examples of SLAs. e. it may be the schedule that stipulates how well the services have to be provided and what happens if the supplier does not provide this.

Similar confusion applies in relation to other commonly-used terms. The term ‘consequential’ has at one point been defined simply to mean ‘not direct’; but there is also judicial authority to suggest that ‘direct loss’ could include ‘consequential loss’ in certain circumstances. Likewise, the term ‘special damages’ has no fewer than four possible meanings, including past (pecuniary) loss calculable as at the trial date – as opposed to all other items of unliquidated ‘general damages’; and losses falling under the second rule in Hadley v.

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