Mon12112017

Last updateTue, 24 Feb 2015 5pm

Sykes Anderson Perry Ltd

Sykes Anderson Perry Ltd

Duncan Brown reviews a case providing a timely reminder when drafting side letters

The rule against penalties is an exception to the general principles of freedom to contract and that a contract should be enforceable in accordance with its terms. If a clause is a penalty, that clause is unenforceable and the court has no discretion to enforce it.