Contracts II - Gwu - George Washington University

PROBLEM V. (20 percent)
The following edited excerpt comes from a recent case:
Landmark Graphics [is] the licensor of a software
program called SeisVision. Hou-Tex [sought] to develop
a prospective oil field. To help choose the best site
for an oil well on the land, Hou-Tex hired Saguaro
Seismic Surveys. Saguaro conducted a geophysical
survey and interpreted its seismic data with a test
version of SeisVision.
SeisVision helped select a site [that] was a dry
hole. The well was 1,150 feet east and 650 feet north
of the site where it should have been drilled. This
deviation was the result of a defect in SeisVision that
miscalculated data from plots of land with irregular
boundaries. Landmark had corrected the problem in an
updated version of SeisVision, which it had sent to
only some of its clients. Saguaro had [not] been told
about the bug or sent the updated version.
Saguaro received SeisVision under a Nondisclosure
Agreement. This agreement included the following
disclaimer:
Tester understands and acknowledges that the
Software is a test product and its accuracy
and reliability are not guaranteed. Tester
waives any and all claims it may have against
the Company arising out of the performance or
nonperformance of the Software.
Identify and discuss any claims and defenses that the
parties might assert, and any remedies that they might seek.
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