The Cambridge Private Law Centre will host a series of ‘current developments’ and ‘research in progress’ seminars this term both in-person and over Zoom.
Speaker: Rory Gregson (Trinity)
You and I enter a contract which specifies that if I breach I must pay you agreed damages of £1000. I breach the contract, causing you £1,000,000 of loss. Can you recover your full £1,000,000 loss or just the agreed £1000?
Answering this question requires two issues to be distinguished. The first issue is one of construction: did we agree that I should pay you ‘at least £1000’ or ‘£1000, no less and no more’?
The second issue is one of substantive law. Even if we agreed that the £1000 should cap your damages, can you challenge this cap using the rule against penalties, section 3 of the Unfair Contract Terms Act 1977, or section 62 of the Consumer Rights Act 2015? The authorities on this point are often misunderstood and ultimately leave the question open. As a result, it is necessary to revert to first principles and ask what good reasons do we have for the rule against penalties and the statutory controls on exemptions? And are those reasons engaged in the scenario above?
This event will take place in B16 in the Faculty of Law, or you can attend via Zoom.
If you have questions or are interested in speaking at a future CPLC event, please email privatelaw@law.cam.ac.uk
