Employment Law Implications for Liquidated Damages and the Penalty Rule Following El Makdessi – Littleton Chambers

Posted April 14th, 2016 in appeals, contracts, damages, employment, news, penalties, Supreme Court by sally

‘In English law there is a presumption in favour of freedom of contract. The penalty rule represents an exception to that principle. A properly drafted liquidated damages clause entitles the claimant to recover the amount stipulated in the clause even if the actual loss is less than the amount payable. The inclusion of the clause is intended to provide certainty, to make the recovery of damages easier and less costly and, from the opposite perspective, to limit liability.’

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Littleton Chambers, 4th April 2016

Source: www.littletonchambers.com