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Contractual penalties: a new legal test in England for determining whether a provision is a penalty

Published: 11 Jan 2016 Average Rating: 5 / 5 Print
 

Author: Graydon Dowd, Jacob Uljans and Grace Pisano

The United Kingdom's highest court recently handed down an important judgment concerning the doctrine of penalties: Cavendish Square Holding BV v Talal El Makdessi; ParkingEye Limited v Beavis [2015] UKSC 67 (Cavendish/ParkingEye).

The UK Supreme Court judgment, which decided two separate appeals with markedly different fact scenarios, has altered and simplified the law of penalties in England. Whether this landmark decision will have an impact in Australia remains to be seen.

 

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