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Jobson v Johnson [1989]

Facts

  • A clause required that an unconscionable number of shares would be transferred in the event of a breach if contract
  • The contract was breached

Issue

  • How should a penalty clause be effected?

Decision

  • Enforced to the point of reasonableness

Reasoning

  • Couldn’t substitute money as would have affected the controlling interest in Southend United Football Club
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