How to lose $40m—vary your contract, but not your liquidated damages

Table of contents

• Original news
• What was the outcome of this case?
• What issues did this case raise?
• Is the judgment helpful in clarifying any area of law or in respect of its discussions on any of the issues?
• What lessons can be learned from the case?
• What are the new implications from this case?
• Does this give rise to any particular issues that lawyers should now watch out for?

Article summary

Construction analysis: The judgment in Unaoil Ltd v Leighton Offshore Pte Ltd highlights the importance of clear drafting in a Memorandum of Agreement (MoA) and being able to explain the calculation behind liquidated damages. Construction and engineering contracts specialist, Sarah Fox reviews the two threads running through this case—clear drafting and deducting liquidated damages—and provides tips on how you can help your clients avoid the courts.