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Question: hi there i have a question for topic of equity...

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Hi there,

I have a question for topic of Equity..

In the case of Legione v Hateley (1983) 152 CLR 406, the joint judgment of Mason and Deane JJ contains these dicta: “A penalty, as its name suggests, is in the nature of a punishment for non-observance of a contractual stipulation; it consists of the imposition of an additional or different liability upon breach of the contractual stipulation.  On the other hand, forfeiture involves the loss or determination of an estate or interest in property or a proprietary right, e.g., a lease, in consequence of a failure to perform a covenant.  When non-payment of rent or a fine is made the occasion for forfeiture of an estate or interest in property it may be proper to treat the forfeiture as being similar in character to a penalty because it is designed to ensure payment of the rent or fine.  There is, however, a real distinction between "penalty" and "forfeiture" and it is unfortunate that the terms have been frequently used in a way which blurs it.”

 

What doctrines were the judges referring to?  Explain and discuss those doctrines, the distinctions between them and the cases which are the foundation of them and which currently illustrate applications of them.

Regards

Arvin

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