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To embed, copy and paste the code into your website or blog: Liquidated damages clauses are often attacked in common law jurisdictions for being unenforceable penalties . The test for what constitutes a penalty has been reviewed in common law jurisdictions over recent years. Last month, the Singapore Court of Appeal gave welcome clarity to the penalty test in that country. Background: The rule against penalties A contractual breach can create a host of issues, not only over liability, but also the consequences arising out of it. To provide some certainty, parties often stipulate in the contract what damages one party has to pay if it breaches the contract in a certain way. Such provisions are commonly known as liquidated damages clauses, because the clause defines or liquidates the damages that are payable.

United kingdomMotor company ltdUnited kingdom supreme courtSingapore courtCavendish square holdingWhite caseAdvantech pte ltdSeraya energy pte ltdDunlop pneumatic tyre company ltdNew garageஒன்றுபட்டது கிஂக்டம்மோட்டார் நிறுவனம் லிமிடெட்ஒன்றுபட்டது கிஂக்டம் உச்ச நீதிமன்றம்சிங்கப்பூர் நீதிமன்றம்கேவன்டிஷ் சதுரம் வைத்திருத்தல்வெள்ளை வழக்கு