Triple Point agreed to provide commodity trading software to PTT under a milestone-based contract. The project was delayed. PTT terminated and claimed liquidated damages for delay, while Triple Point claimed unpaid invoices.
Selected cases
UK Supreme Court · [2021] UKSC 29
Triple Point Technology Inc v PTT Public Company Ltd
The UK Supreme Court considered liquidated damages, delay and termination in a software implementation contract.
UK Supreme Court16 July 2021
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Quick read
- Implementation contracts need careful delay, acceptance, termination and damages drafting.
- The UK Supreme Court considered liquidated damages, delay and termination in a software implementation contract.
Use this to check
- Define milestones, acceptance and delay consequences clearly
- Say what happens to liquidated damages after termination
- Keep project records tied to contractual dates and deliverables
Decision snapshot
What happened
- Triple Point agreed to provide commodity trading software to PTT under a milestone-based contract.
- The project was delayed.
- PTT terminated and claimed liquidated damages for delay, while Triple Point claimed unpaid invoices.
What the court had to decide
- The issue was how the liquidated damages clause operated where work was delayed and the contract was later terminated before completion.
What the court decided
- The Supreme Court restored a more orthodox approach: liquidated damages generally accrued until termination, with ordinary damages potentially available after termination, depending on the contract wording.
Practical impact
Practical read
- Implementation contracts need careful delay, acceptance, termination and damages drafting.
- If the contract does not explain what happens when a project is late and then terminated, the dispute can become much larger than the original delivery problem.
Useful next steps
- Define milestones, acceptance and delay consequences clearly
- Say what happens to liquidated damages after termination
- Keep project records tied to contractual dates and deliverables
How businesses should read it
Implementation contracts need careful delay, acceptance, termination and damages drafting. If the contract does not explain what happens when a project is late and then terminated, the dispute can become much larger than the original delivery problem.
Key takeaways
- Define milestones, acceptance and delay consequences clearly
- Say what happens to liquidated damages after termination
- Keep project records tied to contractual dates and deliverables