Case Study – Liquidated Damages versus Penalties – Dunlop Pneumatic vs New Garage

Description

In this episode of IAX World of Contracts, we explore the foundational case Dunlop Pneumatic Tyre Co Ltd v. New Garage & Motor Co Ltd (1915), which established the principles for distinguishing liquidated damages from penalties in contracts. The case set the rule that damages must reflect a reasonable estimate of loss, not act as punitive measures. This episode is essential for contract managers, legal professionals, and business leaders who want to ensure their contracts strike the right balance between compensation and fairness.

By the end of this episode, you’ll understand how to draft enforceable liquidated damages clauses, avoid penalties, and ensure that your contracts protect your business without overstepping into punishment.