Contract – Penalty. Having heard two appeals in two separate proceedings concerning the principles underlying the law relating to contractual penalty clauses (the penalty rule), the Supreme Court allowed the first appeal and dismissed the second appeal. The Court decided that none of the terms impugned on the two appeals contravened the penalty rule and further, that the charge in issue in the second appeal did not infringe the Unfair Terms in Consumer Contracts Regulations 1999, SI 1999/2083.