United Kingdom uncategorized

Lordsvale Finance plc v Bank of Zambia

[1996] QB 752; [1996] 3 WLR 688; [1996] 3 All ER 156

JurisdictionUnited Kingdom

CourtHigh Court (Queen's Bench Division, Commercial Court)

Year1996

StatusPersuasive authority

Key Principle

A clause increasing the interest rate on default is not a penalty where the increase is modest and commercially justifiable as a genuine pre-estimate of the increased credit risk, rather than designed to deter breach.

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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