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MANSION PLACE LTD v FOX INDUSTRIAL SERVICES LTD

Construction Law Reporter

MANSION PLACE LTD v FOX INDUSTRIAL SERVICES LTD

The claimant sought a declaration that it had not abandoned its claim for liquidated damages arising out of delay in completion of a project, which the claimant alleged had been caused by the defendant’s failure to progress the works and to commit sufficient labour and resources to the project. The question whether there had been an agreement to abandon the claim for liquidated damages depended upon a short, oral conversation between the directors of the two companies.

Liquidated damages – Abandonment of claim – Whether clause a penalty clause or too uncertain to be enforced

The claimant sought a declaration that it had not abandoned its claim for liquidated damages arising out of delay in completion of a project, which the claimant alleged had been caused by the defendant’s failure to progress the works and to commit sufficient labour and resources to the project. The question whether there had been an agreement to abandon the claim for liquidated damages depended upon a short, oral conversation between the directors of the two companies.

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