structural:expansion
The current position – Cavendish Square Holdings BV v Makdessi

In November 2015 the Supreme Court held joint appeals in the matter of Cavendish Square Holding BV v Talal El Makdessi and ParkingEye Ltd v Beavis, and took the opportunity to restate the law in a lengthy judgment. The leading judgment was a joint judgment of Lord Neuberger and Lord Sumption, but the court was unanimous save that Lord Toulson dissented in part on the ParkingEye decision. Their Lordships recounted the relevant legal history, noting that the law originated in cases relating to " penal bonds ", and noting the parallel developments between the rule against penalties (in the common law courts) and relief from forfeiture (in the equitable courts). After noting the rule had "not weathered well", their Lordships recorded that in relation to consumer contracts the matter was now effectively regulated by the Unfair Terms in Consumer Contracts Regulations. However the rule on penalties still had a purpose to serve in relation to non-consumer contracts and it should not, therefore, be abolished. But equally the court felt that it should not be extended.