Brown's Bay Resort Ltd v Pozzoni

Contract – Breach. The Privy Council dismissed the appellant's appeal against, among other things, a decision that a clause in a lease of part of a resort, granted by the appellant to the respondent, did not restrict the respondent's right to claim damages for breach of contract. It held that, absent any indication in the wording of the clause in the context of the lease as a whole that the 'penalty fee' was to be in substitution for common law damages for breach of contract, the fee would be construed as an additional charge on the occurrence of an interruption caused by a breach of contract.

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