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Bridge v Campbell Discount Co [1962]

Facts

  • The hirer of a car notified the hire-purchase company that he could not afford the instalments and so returned the car

Issue

  • Was a penalty clause effective, requiring 2/3 payment towards the car?

Decision

  • No

Reasoning

  • The clause had still been triggered by a breach, and the clause was penal
  • If the clause had not been triggered by a breach, the clause would be enforceable as it would fall outside of the penalty jurisdiction
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