Azimut-Benetti SpA v Healey – QBD (Com Ct)(Blair J) – 3 September 2010

Contract – Penalty clause - Contract for construction and sale of luxury yacht - Whether termination clause a penalty or liquidated damages

By a Yacht Construction Contract dated 25 September 2008, the claimant yacht builder agreed to construct, and Shoreacres Ltd agreed to buy, a white 60 metre yacht with a hull number FB256. The price was €38 million payable in instalments, and the scheduled delivery date was 30 November 2011. The defendant gave his personal guarantee also dated 25 September 2008.