United Kingdom Leading Case uncategorized

Clydebank Engineering & Shipbuilding Co v Don Jose Ramos Yzquierdo y Castaneda

[1905] AC 6; [1904] UKHL 3 (HL, on appeal from Scotland)

JurisdictionUnited Kingdom

CourtHouse of Lords (on appeal from the Court of Session, Scotland)

Year1904

StatusBinding authority

Key Principle

A contractual sum stipulated for breach is enforceable as liquidated damages, not an unenforceable penalty, where it represents a genuine pre-estimate of loss; it is a penalty only where so extravagant and unconscionable that it could not be a pre-estimate of any conceivable loss.

Area of Law

Related Cases

Statoil ASA v Louis Dreyfus Energy Services LP [2008] EWHC 2257 (Comm); [2008] 2 Lloyd's Rep 685; [2008] 2 CLC 520

Statoil ASA v Louis Dreyfus Energy Services LP (The Harriette N) [2008] EWHC 2257 (Comm); [2008] 2 Lloyd's Rep 685; [2009] 1 All ER (Comm) 1035

R v Rahman [2008] UKHL 45; [2009] 1 AC 129; [2008] 3 WLR 264; [2008] 4 All ER 351

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