FA & FAA v TZ & TZZ [2017] NZDT 1048 (18 July 2017) [pdf, 90 KB]
...clauses are unenforceable. A provision in a contract will constitute a penalty clause if it is punitive, imposing a penalty for breach that is extravagant or unconscionable having regard to the innocent party’s interest in the contract being performed. [6] The Membership Agreement for each applicant provides for a minimum term of twelve months. Clause 4 states: “The membership will continue on a monthly basis (“extended period”), after the completion of the...