GENERAL TRADING COMPANY (HOLDINGS) LTD v RICHMOND CORPORATION LTD
[2008] Lloyd's Rep. Plus 76
QUEEN’S BENCH DIVISION (COMMERCIAL COURT)
Before Mr Justice Beatson
Guarantee – Defendant undertaking to obtain loan
guarantee to enable claimant to obtain loan facility for subsidiary – Whether
defendant in breach of agreement – Whether clause permitting defendant to
cancel loan notes if defendant failed to obtain a guarantee was a penalty
clause.