Abstract
This article maps the current penalty tests in Australia and the United Kingdom following recent revision. It demonstrates how this revision has relaxed the relationship between sums recoverable under liquidated damages clauses and damages recoverable at law for breach of contract. This article acknowledges that the relaxation of that relationship makes liquidated damages clauses more attractive to powerful contracting parties. However, it also cautions that the new penalties tests may spark certain further legal developments, including to realign the scope of interests protectable under liquidated damages clauses with damages recoverable at common law.
Larissa Welmans and John Naughton, The ‘Interest’ Based Penalty Tests in Paciocco and Cavendish/Parkingeye and the Law of Penalties and Damages In Australia and the United Kingdom, University of Western Australia Law Review, volume 43 issue 2 p 174 (August 2018).
First posted 2018-08-22 14:21:17
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