2.32 There were a number of remedies in the contract in the event of failure, including liquidated damages and termination. Liquidated damages in respect of the core software application could have been applied from the date of failure to deliver at a rate of £2,000 per day up to a maximum of 100 working days, a total of £200,000. Failure to deliver the core application also gave the Department the right to terminate the contract. In that event the Department could have sued for damages covering its costs up to the limits of the liability of £40 million set in the contract. The Department's lawyers advised that ICL would be likely to look to counter-claim (with or without justification) on a number of possible grounds, such as the business requirement not being sufficiently clear and the time taken by the Department to consult with magistrates' courts' representatives. The Department decided to take no action on the breach, however, because of the continuing discussions on a solution.