GENERAL TRADING COMPANY (HOLDINGS) LTD v RICHMOND CORPORATION LTD
[2008] 2 Lloyd's Rep. 475
QUEEN’S BENCH DIVISION (COMMERCIAL COURT)
Before Mr Justice Beatson
Guarantee - Defendant undertaking to obtain loan guarantee to enable claimant to obtain loan facility for subsidiary - Whether defendant in breach of agreement - Whether clause permitting defendant to cancel loan notes if defendant failed to obtain a guarantee was a penalty clause.