information:classification, linguistic:voice_change, structural:expansion
Requirement for breach

A clause which provides for a large payment in pursuant of the performance of obligations is not a penalty at law. In Berg v Blackburn Rovers FC it was held that where a football club exercised its right to terminate employment of a manager upon payment out of the remaining salary due under the contract, this was the performance of a term and not a provision designed to constrain breach. Accordingly, it could not be a penalty. For English law this position was reaffirmed by the Supreme Court in the Makdessi decision.