From The Jolly Contrarian
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| {{isdaanat|6(e)(v)}}
| | #redirect[[Payments on Early Termination]] |
| From [[the lady doth protest too much]] school of contractual drafting, a neat and theoretically vacuous attempt to ensure that Early Terminaiton Amounts determined under an ISDA are not seen as (unenforceable) penalty clause, but rather a [[liquidated damages ]] clause — i.e., a “genuine pre-estimate of loss” caused by a breach of contract, as enunciated by Lord Dunedin in that famous contract case on penalty clauses, {{casenote|Dunlop Pneumatic Tyre Co Ltd|New Garage & Motor Co Ltd}}.
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| But it either is or it isn't. As it happens, it probably is a liquidated damages clause, but the parties agreeing in a standard form that it is one doesn't really help that analysis.
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Revision as of 18:42, 13 April 2020