A new look for payment terms

摘要

Construction companies build up a number of contracts on daily basis with clients, suppliers, employees, sub-contractors and vendors etc. Very often the Contract managers play an important role in contract management and ensure the management board to be full updated of the law. This article provides a practical hint for the practitioners, focusing particularly on the Supreme Court's consolidated decisions of Cavendish Square Holding BV v Talal El Makdessi (Cavendish) and Parking Eye Limited v Beavis [2015] UKSC 67 (Parking Eye) on the validity of the penalty and payment clauses. The judgment results in significant practical lessons learnt for those negotiating commercial contracts or attempting to impose charges for defaults in consumer arrangements. The contract administrators are recommended to take proactive contract management and have regular contract review for change.