Delaware Business Litigation Report

District Court Awards Damages Despite Unenforceable Contract Term

Vici Racing LLC v. T-Mobile USA Inc., Case No. 10-835-SLR (D. Del. February 8, 2013)

This case involves a classic mistake. The contract contained a severability clause that required a court to enforce the contract even if one of its provisions was unenforceable. The Court held that the marketing commitment of key importance to the defendant was not enforceable.  But, as a result of the severability clause, the Court enforced the contract in favor of the plaintiff and awarded it damages.  Hence, using form contract terms is not a good idea.

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