Overview

Liquidated damages will be available where a clause in the contract between the parties provides that a particular sum of money will be payable upon breach; provided that the sum specified does not constitute a 'penalty', the non-breaching party may sue for this 'liquidated' sum rather than for unliquidated damages.

On the issue of penalties see:

Anthony Gray, 'The Law of Penalties and the Question of Breach' (2017) 45 ABLR 8
This discusses the law of penalties in light of the High Court decisions in Andrews and Paciocco.

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Last updated: 18 October 2019