Interest on Debt and Damages
This 1990 report recommended that, in respect of overdue contractual debts, in addition to the then existing discretionary power of the court to award interest, there should be a statutory entitlement to interest. This would be payable at compound rates from the agreed payment date or, in lieu of any agreed date, from 28 days after receipt of a demand letter. The parties to a contract, however, would be allowed to exclude the application of statutory interest by agreement. Rent, as well as quasi-contractual debts, should be excluded.
As for interest on damages, the report found that the law and practice relating to interest on damages was not in general need of reform and could be left to the court's discretion.
|Press Release (PDF) (MS Word)|
|Report (PDF) (MS Word)|