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Penalties on car rental agreements

Penalties on car rental agreements

Pawlowski, Mark ORCID: 0000-0002-5473-5809 (2007) Penalties on car rental agreements. Solicitors Journal, 151 (27). 914 - 915. ISSN 0038-1047

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Examines the Cambridge County Court ruling in Volkswagen Financial Services (UK) Ltd v Ramage on whether a clause in a car hire contract which allowed the finance company, upon repudiation of the contract after the hirer fell into arrears, to claim compensation equivalent to the lost future rental payments was unenforceable as a penalty clause, rather than being a reasonable pre-estimate of actual loss. Refers to case law including the Court of Appeal ruling in Anglo Auto Finance Co v James in considering the differing losses which would occur during the course of the hire term according to the natural depreciation of the value of the car. Notes the reasoning of the Court on: (1) contracts of hire compared with hire purchase agreements; (2) the comparative position of the parties and the freedom to contract elsewhere; and (3) the reasonable prediction of future losses.

Item Type: Article
Uncontrolled Keywords: agreements, breach of contract, contracts of hire, future loss, hire purchase, liquidated damages, penalty clauses, repudiation
Subjects: K Law > KD England and Wales
Pre-2014 Departments: School of Humanities & Social Sciences
School of Humanities & Social Sciences > Department of Law & Criminology
School of Humanities & Social Sciences > Law & Criminology Research Group
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Last Modified: 02 Oct 2019 14:13

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