Golden Strait Corporation v Nippon Yusen Kubishika Kaisha (The Golden Victory)

The UKSC reformulated the penalty clause rule, replacing the Dunlop test with a legitimate interest test asking whether the clause is extravagant or unconscionable relative to that interest.

Remoteness of damage in contract may depend on whether the defendant assumed responsibility for the type of loss, not merely reasonable contemplation.

Where cost of cure is disproportionate to benefit obtained, damages for defective performance may be limited to diminution in value or loss of amenity rather than cost of reinstatement.