President of India v Lips Maritime Corporation

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The House revisited the topic in President of India v Lips Maritime Corporation [1988] AC 395 (amusingly known to all as the “Lips”), where a claim for a currency exchange loss through late payment of demurrage failed on the straightforward basis that demurrage is liquidated damages, and the law knows no such thing as a claim for damages for failing to pay damages.

Claims to recover currency exchange losses as damages for breach of contract, whether the breach relied on is late payment of a debt or any other breach, are subject to the same rules as apply to claims for damages for breach of contract” (i.e. ordinary remoteness of damage and causation principles)

See also

• FX
• Breach of contract