*Unaoil Ltd v Leighton Offshore Offshore PTE Ltd

Contract – Memorandum or note. The parties contracted under a memorandum of understanding to work together in oil production in Iraq. A dispute arose and the claimant commenced proceedings. The Commercial Court held that, among other things, the claimant was entitled to recover debts accrued in a debt claim, but that sums stated to be recoverable in the event of breach in a memorandum of understanding were a penalty and unenforceable.

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