Musings of a busy mind

Yesterday, the Supreme Court granted leave to 127 Hobson Street on the core question decided by the Court of Appeal that the indemnity provision in the agreement to lease did not offend the prohibition against penalties.

It has become a truism that liquidated damages are enforceable, and will not offend the rule against penalties, if they represent a genuine pre-estimate of loss undertaken at the time the contract is entered into.

That position was modified significantly last month by the Court of Appeal.