Recent Developments about Penalties

This article explores the changes in the law of penalties, which was until recently considered to be settled post the decision in Dunlop Pneumatic Tyre Co. Ltd. v. New Garage and Motor Co. Ltd. However, the decisions in Andrews v. Australia and New Zealand Banking Group, and in Cavendish Square Holding BV v. Talal El Makdessi, in Australia and the United Kingdom respectively, have created new ripples in this otherwise consistent position of law. In this context, the article explores some basic principles of penalties, discusses the viability and application of the Penalty Doctrine and the manner in which this tangibly affects the drafting of contracts. Further, the common law relief of the Penalty Doctrine is discussed along with the equitable remedy of Relief against Forfeiture, and the manner in which what constitutes \u27relevant factors\u27 may differ due to the subjectivity and discretion associated with each relie