(Ceylon) The Board was asked whether a clause in a contract amounted to a penalty: ‘whatever be . . the expression used in the contract in describing the payment, the question must always be whether the construction contended for rendered the agreement unconscionable and extravagant, and one which no Court ought to allow to be enforced.’
Judges:
Lord Mersey
Citations:
[1912] AC 394
Citing:
Applied – Clydebank Engineering Co v Castaneda HL 19-Nov-1904
The House considered a contract for the construction by a Scottish shipbuilder of four torpedo boats for the Spanish government. The contract provided that: ‘The penalty for late delivery shall be at the rate of andpound;500 per week for each . .
Cited by:
Cited – Dunlop 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, . .
Lists of cited by and citing cases may be incomplete.
Contract, Commonwealth
Updated: 04 May 2022; Ref: scu.440839