The Australian penalty doctrine applies to any contractual stipulation imposing a detriment not a genuine pre-estimate of damage, and is not confined to secondary obligations triggered by breach.
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On termination of a building contract, a builder may recover reasonable value of work done in restitution, subject to the contract price as a ceiling where work was performed under a valid contract.
Bank late payment fees are not penalties where they represent a genuine pre-estimate of loss or protect a legitimate interest of the stipulating party.
High Court of Australia examined the principles governing rectification of written contracts for common intention and unilateral mistake in equity.
Get a detailed analysis of Andrews v Australia and New Zealand Banking Group Ltd and how it applies to your situation.
Explain Andrews v Australia and New Ze...