“The law around unenforceable penalty clauses is well-known but the question of how to apply it in practice is notoriously tricky. The court has recently looked at this issue again in De Havilland v Spicejet. The Indian airline Spicejet agreed to purchase aircraft from the Canadian manufacturer De Havilland. Spicejet failed to pay some of the pre-delivery payments due under the purchase agreement and then failed to take delivery of some of the aircraft. De Havilland served notice terminating the agreement and claiming liquidated damages payable on termination …” (more)
[Sophie Orwell, Allen and Overy: Compact Contract, 4 March]
First posted 2021-03-05 13:00:48
Leave a Reply