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General Finance Acceptance Ltd v Melrose
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General Finance Acceptance Ltd v Melrose : ウィキペディア英語版
General Finance Acceptance Ltd v Melrose


''General Finance Acceptance Ltd v Melrose'' () 1 NZLR 465 is an often cited case regarding whether a contract term for calculating damages in the future are what is called liquidated damages (i.e. is a genuine pre estimate of damages), or is otherwise deemed a penalty clause, which the courts do not uphold as legally enforceable.
==Background==
General Finance Acceptance (GFA) leased a computer to Melrose on a five-year term, with the leasing contract having the term that upon default, that Melrose would pay all the remaining lease payments less the cost of the computer at the date of cancellation, plus interest on top of al this at 32% per annum.
Melrose cancelled the contract early, and was billed by GFA for this default as per the default clause in the lease agreement, even though these damages were far higher than Melrose would have paid had the lease gone the whole five-year term, and they disputed liability for these damages.

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