Rentokil Initial 1927 plc v Goodman Derrick LLP

Solicitor – Negligence. The claimant company retained the defendant solicitors' firm to act in the sale of commercial premises to another company. The sale was completed at a lower price than originally agreed and the claimant issued proceedings against the defendant for negligence. The Chancery Division, in dismissing the claim, held that the relevant clauses of the sale agreement had not exposed the claimant to the risks which it asserted as the foundation of its claim against the defendant. Further, the claimant's representative had had a proper understanding of the risks inherent in the transaction, and the detail and effect of the terms of the contract.