Law Commons^™

Penalty Clauses – What Has Changed?, Bruno Zeller

Pace International Law Review

Building on two seminal cases that consider the character of penalty clauses, Paciocco v Australia and New Zealand Banking Group Ltd from Australia and Cavendish Square Holding BV v. Talal El Makdessi from England, this Article sheds a new light on the treatment of fixed sums and argues that the view on whether penalty clauses are governed by the CISG requires new considerations. Importantly, this Article demonstrates a two-step approach to the analysis of penalty clauses: 1) whether the sum in question is penal in nature, and 2) if so, whether the CISG determines the fate of the penalty clause …