Urica Library Systems BV v Sanderson Computers Pty Ltd

Urica Library Systems BV (Urica) and Sanderson Computers Pty Ltd (Sanderson) were parties to litigation before the New South Wales Court of Appeal concerning a dispute over a software licence agreement. The core of the disagreement revolved around Sanderson's alleged breach of this agreement, which Urica claimed had caused it significant loss.

The central legal issues before the Court of Appeal were whether Sanderson had repudiated the software licence agreement and, if so, whether Urica had accepted that repudiation. Further, the Court considered the principles governing the assessment of damages for breach of contract in such circumstances, particularly in relation to the loss of a commercial opportunity.

The Court of Appeal, in its reasoning, examined the conduct of Sanderson and determined that its actions amounted to a repudiation of the contract. Urica's subsequent conduct was found to constitute an acceptance of this repudiation, thereby entitling Urica to claim damages. The Court applied established principles of contract law regarding repudiation and acceptance, and also considered the principles for assessing damages for loss of a commercial opportunity, requiring Urica to demonstrate that the lost opportunity was real and not merely speculative.

The Court of Appeal upheld the primary judge's decision, finding in favour of Urica and ordering Sanderson to pay damages.