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Hong Kong Leading Case liquidated damagesgenuine pre estimateliquidated damages

Philips Hong Kong Ltd v Attorney General of Hong Kong

(1993) 61 BLR 41 (PC)
JurisdictionHong Kong
CourtJudicial Committee of the Privy Council (on appeal from Hong Kong)
Year1993
StatusBinding authority

Key Principle

A liquidated-damages clause is enforceable if it is a genuine pre-estimate of likely loss; the court should not strike it down merely because hypothetical scenarios could produce a sum exceeding actual loss, giving weight to freedom of contract.

Area of Law

Contract & Commercial

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