Liquidated Damages in UK Law

Leading Cases
  • Triple Point Technology, Inc. v PTT Public Company Ltd
    • Court of Appeal (Civil Division)
    • 05 Mar 2019

    If a construction contract is abandoned or terminated, the employer is in new territory for which the liquidated damages clause may not have made provision. It may be more logical and more consonant with the parties' bargain to assess the employer's total losses flowing from the abandonment or termination, applying the ordinary rules for assessing damages for breach of contract.

  • Hall and Another v Heiden
    • Queen's Bench Division (Technology and Construction Court)
    • 23 Mar 2010

    Take the example of a contractor who has wholly failed to comply with the contract, is in considerable delay, and is facing a notice of termination.

  • Mr Christopher Shaw and Mrs Gabriele Shaw v Mfp Foundations and Pilings Ltd
    • Queen's Bench Division (Technology and Construction Court)
    • 23 Jul 2010

    So far as liquidated damages are concerned, in respect of any period of culpable delay up to the date when the contract is terminated the employer is entitled to recover liquidated damages at the contractual rate (or nothing, if that is what the contract provides).

  • Jobson v Johnson
    • Court of Appeal (Civil Division)
    • 25 May 1988

    One consequence of the attitude of the courts to penalty clauses is that the question whether a sum stipulated is penalty or liquidated damages is a question of construction to be decided upon the terms and inherent circumstances of each particular contract, judged of as at the time of the making of the contract, not as at the time of the breach— Dunlop Pneumatic Tyre Company Ltd. v. New Garage and Motor Company Ltd. (1915) AC 79 at 86–7, per Lord Dunedin.

  • Robophone Facilities Ltd v Blank
    • Court of Appeal
    • 27 Jun 1966

    And the more difficult it is likely to be to prove and assess the loss which a party will suffer in the event of a breach, the greater the advantages to both parties of fixing by the terms of the contract itself an easily ascertainable sun to be paid in that event. The Court should not be astute to descry a "penalty clause" in every provision of a contract which stipulates a sum to be payable "by one party to the other in the event of a breach by the former.

  • Cavendish Square Holding BV v Talal El Makdessi; ParkingEye Ltd v Beavis
    • Supreme Court
    • 04 Nov 2015

    The true test is whether the impugned provision is a secondary obligation which imposes a detriment on the contract-breaker out of all proportion to any legitimate interest of the innocent party in the enforcement of the primary obligation. The innocent party can have no proper interest in simply punishing the defaulter. His interest is in performance or in some appropriate alternative to performance.

  • White and Carter (Councils) Ltd v McGregor
    • House of Lords
    • 06 Dic 1961

    It may well be that, if it can be shown that a person has no legitimate interest, financial or otherwise, in performing the contract rather than claiming damages, he ought not to be allowed to saddle the other party with an additional burden with no benefit to himself. If a party has no interest to enforce a stipulation he cannot in general enforce it: so it might be said that if a party has no interest to insist on a particular remedy he ought not to be allowed to insist on it.

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Legislation
  • Bills of Exchange Act 1882
    • UK Non-devolved
    • 1 de Enero de 1882
    ......in due course. S-57 . Measure of damages against parties to dishonoured bill. 57 Measure of damages against ...shall be deemed to be liquidated damages, shall be as follows:. . (1) . (1.) The holder may recover from ......
  • Common Law Procedure Act 1852
    • UK Non-devolved
    • 1 de Enero de 1852
    ......Damages claimed by him in such Action, either before a Jury upon a Writ of ... the Jurisdiction of the Court, and the Claim is for a Debt or liquidated Demand in Money, with or without Interest, arising upon a Contract, ......
  • Bankruptcy Act 1861
    • UK Non-devolved
    • 1 de Enero de 1861
    ...... or Suit brought for the Recovery of a Debt, Money Demand, or Damages against any Debtor, exceeding Fifty Pounds, such Goods and Chattels shall ... Nature of Damages which have not been and cannot be otherwise liquidated or ascertained, it shall be lawful for the Court acting in prosecution of ......
  • Supreme Court of Judicature Act 1875
    • UK Non-devolved
    • 1 de Enero de 1875
    ...... actions where the plaintiff seeks merely to recover a debt or liquidated demand in money payable by the defendant, with or without interest, ... otherwise affected in any such action, or for the breach whereof damages or other relief are or is demanded in such action, was made or entered ......
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Books & Journal Articles
  • Liquidated Damages: An Empirical Study in the Travel Industry*
    • Núm. 42-5, Septiembre 1979
    • The Modern Law Review
  • Managing for performance: Measurement and monitoring of contracts in the transit industry
    • Núm. 16-2, Marzo 2016
    • Journal of Public Procurement
    • 208-242
    Public agencies contract out to pursue a variety of goals. But, these goals cannot be realized if the performance of contractors is not assessed and monitored. This study examines the state of perf...
    ...... the most common performance measures, while penalties and liquidated damages are the most frequent form of penalties. Finally, we find ......
  • The Penalty Clause Bias
    • Núm. 21-1, Marzo 2014
    • Maastricht Journal of European and Comparative Law
    Common law and civil law do not seem to agree on the function of punitive liquidated damages. Whereas penalty clauses are seen as a way of enriching contract law in France and the Netherlands, they...
    ...... and civil law do not seem to agree on the f unction of punitive liquidated damages. Wherea s penalty clauses are seen as a way of enr iching ......
  • Contributors of Articles
    • Núm. 42-1, Enero 1979
    • The Modern Law Review
    ...... Judicial Notice and Personal Knowledge MILNER, ALAN Liquidated Damages: An Empirical Study in the Travel Industry MORRIS, ......
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Law Firm Commentaries
  • Liquidated damages in energy projects
    • JD Supra United Kingdom
    In a noteworthy decision to participants in the energy industry, the High Court of England & Wales examined what constitutes a valid liquidated damages clause in the event of delayed completion...
  • Liquidated damages for sectional completion
    • JD Supra United Kingdom
    In the recent English High Court case of Vinci Construction UK Ltd v. Beumer Group UK Ltd, the court considered whether liquidated damages were enforceable under a construction contract which provi...
  • Termination & Liquidated Damages: Less Clear than Ever
    • JD Supra United Kingdom
    The Court of Appeal of England & Wales considered, in respect of a delayed software project, whether a liquidated damages provision survived termination of the contract.
  • Liquidated Damages for Post-Termination Delay?
    • JD Supra United Kingdom
    The High Court of England & Wales considered, in respect of the delayed completion of a solar project, the appropriate end date for liquidated damages under a terminated construction contract.
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