The appellant (A) and the respondent (B) were both antique dealers. Following a dispute, a large amount of debt became due from B to A. On 1 May 2010, a settlement was agreed, with B to pay A $1.5 million in ‘full and final settlement of all claims between the parties’ and a penalty clause was added that in the event of non-payment by 21 May 2010, B would pay $1,000 per day to A as a penalty.
Between 2010 and 2016, B made some payments towards the settlement sum, but not the full amount, invoking the interest that had been accumulating daily since 22 May. In 2014, B agreed to pay $800,000 to A, which B later argued discharged his outstanding liabilities from the original agreement.
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