ORESUNDSVARVET AKTIEBOLAG v. MARCOS DIAMANTIS LEMOS (THE “ANGELIC STAR”)

[1988] 1 Lloyd's Rep. 122

COURT OF APPEAL

Before Sir John Donaldson, M.R., Lord Justice Neill and Lord Justice Ralph Gibson

Shipbuilding contract - Penalty clause - Default clause in contract provided that in the event of default purchaser to pay immediately all sums due and to become due including future interest - Whether this a penalty clause - Whether clause enforceable under English law.