TNAG-0929-FCO40-1147-Protection-of-Trading-Interests-Bill-extension-to-Dependent--1980 — Page 70

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assessed as compensation for the loss or damage sustained by the

person in whose favour the judgment is given.

Note: clause 5(2)(a) and (3) will operate so as to make

unenforceable a judgment for multiple damages given by a court

of an overseas country where the parties had included in their

contract a provision for the payment of such damages, for example,

in the event of a breach of contract. Such provisions in contracts

are rare since most penalty clauses in contracts are drafted

as to require the payment of a specific sum, not a sum

arrived at by multiplying the amount of compensation.

But in

the rare case of such a provision being included in a contract

and where as a result judgment is given by an overseas court

for the payment of multiple damages, it is right that the

general ban on enforcement should apply.

7. Subsection (4) defines the provisions or rules of law in

respect of which the Secretary of State may make orders, and

judgments based on which will consequently be rendered

unenforceable in the United Kingdom under subsection (2)(b).

These are any provision or rule of law of an overseas country

which appears to the Secretary of State to be concerned with

the prohibition or regulation of agreements, arrangements or

practices designed to restrain or restrict competition in the

carrying on of business of any description or to be otherwise

concerned with the promotion of competition.