A penalty is now to be regarded as: “a secondary obligation which imposes a detriment on the contract-breaker out of all proportion to any legitimate interest of the innocent party in the enforcement of the primary obligation.” The UK Supreme Court has reviewed the English law of penalties and re-formulated the test in a landmark judgment on two unrelated appeals heard together: (1) Cavendish Square Holding BV – v – Talal El Makdessi (“Cavendish”); and (2) ParkingEye Ltd – v – Beavis ("Beavis").