General Finance Acceptance Ltd v Melrose - [1988] 1 NZLR 465

Contract — Damages — Assessment — Finance company leased computer to lessee under agreement which provided that on default lessee must pay monthly instalments for balance of five year term, less value of computer at date of cancellation, plus interest at 32% from date of default until payment — Lessee repudiated contract after a few months and finance company claimed, pursuant to lease agreement, damages which were considerably in excess of total amount payable by lessee if agreement had run its course — Whether damages clause in agreement was penal and unenforceable — Whether, and on what basis, finance company could recover damages at common law.