Co-op Group v. ICL: Loyalty scheme pays 'Dividend' for supplier

The ruling of the High Court in Co-op Group v ICL confirms some basic principles of contract law within a computer system context, demonstrating the application of the law to computer technology and further strengthening the body of case law in this field. This article focuses upon two areas which are considered within the judgment: contract formation and the assessment of damages. From examining these areas it can be seen that despite the complex nature of computer system disputes, the courts are increasingly willing to tackle the difficulties posed in order to reach a fair decision for the parties concerned. This judgment rules in favour of the supplier demonstrating that in the absence of adhering to principles already well-established in contract law the courts will not allow IT customers to be afforded protection which would otherwise be unavailable to them.