In this video Tom Owen, examines the impact of the decision in Makdessi v Cavendish Square Holdings on liquidated damages clauses, particularly in a construction law context. This video is 20 minutes long and covers the following topics:
- The purpose of liquidated damages
- What the penalties doctrine is and when it applies
- The test for assessing whether liquidated damages are penal
- The facts of Makdessi and Beavis
- How the Supreme Court decided each case
- Practical guidance that can be derived from the decision
- The impact of the decision on construction contracts
