Jeancharm Ltd (T/A Beaver International) v Barnet Football Club Ltd: CA 16 Jan 2002

The claimant contracted to supply football shirts to the defendant, but claimed that clauses in the contract with regards to late delivery and payment operated as penalties and so were void at common law.
Held: The sums set out were immodest and went far beyond any attempt to pre-estimate losses. They were invalid as a penalty. The court rejected a move to a more discretionary approach to deciding whether a clause was a penalty.

Judges:

Jacob J, Keene LJ

Citations:

[2003] EWCA Civ 58

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

CitedDunlop Pneumatic Tyre Company Ltd v New Garage and Motor Company Ltd HL 1-Jul-1914
The appellants contracted through an agent to supply tyres. The respondents contracted not to do certain things, and in case of breach concluded: ‘We agree to pay to the Dunlop Pneumatic Tyre Company, Ltd. the sum of 5 l. for each and every tyre, . .
CitedRobophone Facilities Ltd v Bank CA 1966
Parties to a contract should be free to stipulate not only primary obligations and rights but also the secondary rights and obligations, ie those which arise upon non-performance of any primary obligation by one of the parties to the contract, but . .
CitedPhilips (Hong Kong) Ltd v The Attorney General of Hong Kong PC 9-Feb-1993
After referring to two Australian cases on penalty clauses in contracts: ‘These statements assist by making it clear that the court should not adopt an approach to provisions as to liquidated damages which could, as indicated earlier, defeat their . .
CitedAMEV-UDC Finance Ltd v Austin 1986
High Court of Australia – Contract – Damages – Penalty – Agreement for hire of chattel – Failure to pay instalments of hire – Termination by owner pursuant to contractual power – Damages – Instalments due but unpaid – Damages for loss of . .
CitedLordvale Finance plc v Bank of Zambia 1996
The parties’ contract provided for an uplift of 1% for late payment of a debt.
Held: This was a genuine pre-estimate on the basis that it indicated that the borrower was a risky borrower. It was not a penalty. . .

Cited by:

CitedOffice of Fair Trading v Abbey National Plc and seven Others ComC 24-Apr-2008
The Office sought a declaration that the respondent and other banks were subject to the provisions of the Regulations in their imposition of bank charges to customer accounts, and in particular as to the imposition of penalties or charges for the . .
CitedTullett Prebon Group Ltd v El-Hajjali QBD 31-Jul-2008
The defendant signed an employment contract to join the claimants as a senior broker. He changed his mind and decided to stay in his existing job. The new employers sued for breach of contract. The defendant said that the claimants had refused to . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 07 June 2022; Ref: scu.181292