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Enforceability of penalties for late delivery in the UK: UK Supreme Court confirms the law of liquidated damages
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For some time the position under English law relating to the recovery of liquidated damages from a contractor as penalty for late delivery has been unclear where the contract terminates before the contractor completes the work. Welcome clarity has now been provided by the Supreme Court in the case of Triple Point Technology Inc v PTT Public Company Ltd. The decision means that unless the liquidated damages clause “clearly” provides otherwise, liquidated damages for any work not completed by the date provided for in the agreement can be claimed for the period up to the date of termination.