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Another piece of the puzzle: Are penalty clauses unenforceable or void?

Research output: Other contribution

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Another piece of the puzzle: Are penalty clauses unenforceable or void? / Chong, Shouyu.

11 p. United Kingdom : Society of Construction Law. 2021, A commended entry in the Hudson Prize 2020.

Research output: Other contribution

Harvard

Chong, S 2021, Another piece of the puzzle: Are penalty clauses unenforceable or void?. Society of Construction Law, United Kingdom.

APA

Chong, S. (2021, Sep 30). Another piece of the puzzle: Are penalty clauses unenforceable or void? Society of Construction Law.

Vancouver

Chong S. Another piece of the puzzle: Are penalty clauses unenforceable or void? 2021. 11 p.

Author

Chong, Shouyu. / Another piece of the puzzle: Are penalty clauses unenforceable or void?. 2021. United Kingdom : Society of Construction Law. 11 p.

Bibtex Download

@misc{f2162905641447329858b408beb92e1d,
title = "Another piece of the puzzle: Are penalty clauses unenforceable or void?",
abstract = "This paper looks at the rather complex puzzle of liquidated damages and penalties in contracts, and in particular the rule against penalty clauses. It questions whether liquidated damages clauses, when caught by the rule against penalties, should be both unenforceable in court and also treated as invalid or void. The paper examines how the enforcement of liquidated damages clauses is closely related to the enforcement of dispute resolution provisions, and argues that treating the penalty clause as unenforceable is the most appropriate relief. Finally, the paper explains how the rendering of penalty clauses as void could open the floodgates to litigation. I. Introduction – II. Unenforceable or void, and why does it matter? – III. The authorities – IV. Why should penalty clauses be treated as unenforceable? – A. A matter of procedural dispute – B. Framing liquidated damages clauses as dispute resolution provisions – C. The importance of party autonomy in procedural disputes – D. Adverse downstream effects – V. Conclusions (Please write to the author at shou.chong@kcl.ac.uk for a copy of the paper.)",
keywords = "Penalty Clauses, Liquidated Damages Clauses, Contract law, Dispute Resolution, Construction Law, Construction Contracts",
author = "Shouyu Chong",
year = "2021",
month = sep,
day = "30",
language = "English",
publisher = "Society of Construction Law",
type = "Other",

}

RIS (suitable for import to EndNote) Download

TY - GEN

T1 - Another piece of the puzzle: Are penalty clauses unenforceable or void?

AU - Chong, Shouyu

PY - 2021/9/30

Y1 - 2021/9/30

N2 - This paper looks at the rather complex puzzle of liquidated damages and penalties in contracts, and in particular the rule against penalty clauses. It questions whether liquidated damages clauses, when caught by the rule against penalties, should be both unenforceable in court and also treated as invalid or void. The paper examines how the enforcement of liquidated damages clauses is closely related to the enforcement of dispute resolution provisions, and argues that treating the penalty clause as unenforceable is the most appropriate relief. Finally, the paper explains how the rendering of penalty clauses as void could open the floodgates to litigation. I. Introduction – II. Unenforceable or void, and why does it matter? – III. The authorities – IV. Why should penalty clauses be treated as unenforceable? – A. A matter of procedural dispute – B. Framing liquidated damages clauses as dispute resolution provisions – C. The importance of party autonomy in procedural disputes – D. Adverse downstream effects – V. Conclusions (Please write to the author at shou.chong@kcl.ac.uk for a copy of the paper.)

AB - This paper looks at the rather complex puzzle of liquidated damages and penalties in contracts, and in particular the rule against penalty clauses. It questions whether liquidated damages clauses, when caught by the rule against penalties, should be both unenforceable in court and also treated as invalid or void. The paper examines how the enforcement of liquidated damages clauses is closely related to the enforcement of dispute resolution provisions, and argues that treating the penalty clause as unenforceable is the most appropriate relief. Finally, the paper explains how the rendering of penalty clauses as void could open the floodgates to litigation. I. Introduction – II. Unenforceable or void, and why does it matter? – III. The authorities – IV. Why should penalty clauses be treated as unenforceable? – A. A matter of procedural dispute – B. Framing liquidated damages clauses as dispute resolution provisions – C. The importance of party autonomy in procedural disputes – D. Adverse downstream effects – V. Conclusions (Please write to the author at shou.chong@kcl.ac.uk for a copy of the paper.)

KW - Penalty Clauses

KW - Liquidated Damages Clauses

KW - Contract law

KW - Dispute Resolution

KW - Construction Law

KW - Construction Contracts

UR - https://www.scl.org.uk/papers/another-piece-puzzle-are-penalty-clauses-unenforceable-or-void

M3 - Other contribution

PB - Society of Construction Law

CY - United Kingdom

ER -

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