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Agreements Penalty

Beavis used the car park, stayed beyond the 2-hour limit and was charged ¬£85.00. Beavis argued that the charge was a penalty clause and unenforceable. It may not always be possible or economically desirable to conceive of a contractual provision as a “primary” obligation, for example because a party wishes to retain the possibility of suing for damages under the common law for infringement. If this is the case and the rule of the sanction clause is considered, the courts consider whether the determination is of a criminal nature. If the clause is a secondary obligation, the author should focus on proving that the other elements of the review of the sanction clause are not fulfilled.

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