CAVENDISH SQUARE HOLDING BV v EL MAKDESSI; PARKINGEYE LTD v BEAVIS

[2016] BLR 1

SUPREME COURT

Before Lord Neuberger,Lord Mance,Lord Clarke,Lord Sumption,Lord Carnwath,Lord Toulson,Lord Hodge

Penalties – Whether clauses consequential upon breaches of restrictive covenants were penalties – Whether enforceable. – Agreement for sale of shares – Provision for payment in instalments – If seller defaulted on restrictive covenants, Interim and Final Payments not to be made – Also remaining shareholding could be obtained by purchaser's exercise of an option – Whether clauses unenforceable as penalties.