Judicial practice

The leading case in Common Law System, that most authors provide as an example:

Case: Attorney General v. Blake

Country: England

Chamber: HOUSE OF LORDS.

Date: 27 July, 2000

Judges: Lord Nicholls of Birkenhead Lord Goff of Chieveley Lord Browne-Wilkinson Lord Steyn Lord Hobhouse of Wood-borough

Available at: https://publications.parliament.uk/pa/ld199900/ldjudgmt/jd000727/blake-1.htm

The majority of the Law Lords reasoned that : « the law recognises that damages are not always a sufficient remedy for breach of contract. Even when awarding damages, the law does not adhere blindly to the concept of compensation for financially measurable loss. When the circumstances require, damages are measured by reference to the benefit obtained by the wrongdoer.» One commentator has noted that an agreed sum providing for the disgorgement of benefits derived from breach of contract under the traditional rule would clearly fail to be a liquidated damages clause but that «it would seem odd to knock out such a clause as a penalty at least in a situation where the courts would otherwise be willing to award an account of profits or restitutionary damages».