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Penalties Unenforceable Contract Terms

Patton Sullivan Brodehl LLP

Default Interest Based on Single Late Payment Declared Unenforceable

It is not uncommon for loan agreements to provide for fees, penalties, and default interest in the event of the borrower’s late payment. However, a case recently published by California’s First Appellate District — Honchariw...more

White & Case LLP

Liquidated damages and penalties in Singapore

White & Case LLP on

Liquidated damages provisions in contracts are unenforceable if they constitute a "penalty". The past few years have seen subtle but important shifts in how the concept of a penalty is defined. A recent decision from the...more

Latham & Watkins LLP

Arbitral Awards Based on Penalty Clauses: Enforceable?

Latham & Watkins LLP on

A recent English High Court decision suggests that some such awards may be enforceable notwithstanding the rule against penalties. In Pencil Hill Limited v US Citta di Palermo S.p.A., the English High Court enforced an...more

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