The doctrine of penalty has often been debated, yet the applicable law is still in the making. Recent decisions by Australian and UK courts are the latest in a series of cases which demonstrate the unsettled nature of the doctrine. Contracting parties should keep abreast of the applicable law to avoid an unwitting application of the doctrine which comes with a sting in the tail. This is particularly important for principals and contractors engaging in cross-border projects as laws vary between different countries.
Full report coming soon.