The Triple Point Technology case settled the law on the application of liquidated damages in circumstances where a contract is terminated before the works are completed.

In overturning the decision of the Court of Appeal, the Supreme Court reverted to an orthodox approach whereby the right to liquidated damages accrues until the termination of the contract and thereafter general damages may be sought.

The earlier approach taken by the Court of Appeal contemplated “that a contractor would not be liable for payment of accrued liquated damages for an incomplete milestone in the event of termination”.