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Australia Leading Case penalty clauses and liquidated damages

Paciocco v Australia and New Zealand Banking Group Ltd

(2016) 258 CLR 525
JurisdictionAustralia
CourtHigh Court of Australia
Year2016
StatusBinding authority

Summary

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.

Key Principle

penalty doctrine; late payment fees were not penalties where they were a genuine estimate of cost and legitimate interest protected

Area of Law

contract

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