Liquidated Damages as Unenforceable Penalty for Breach of Settlement Agreement
Synthèse Legislator
Généré par l'IAA dispute arose over whether a party was entitled to liquidated damages after the other party materially breached a settlement agreement regarding outstanding debt and the provision of security interests. The court held that the liquidated damages clause was an unenforceable penalty because the stipulated amount bore no reasonable relation to the actual or probable injury caused by the breach, as the parties did not engage in a proper pre-estimate of damages, thereby constituting an illegal penalty rather than a valid liquidated damage provision.
Regeste Legislator
Généré par l'IAArt. 66 al. 1 LTF; Liquidated Damages as Unenforceable Penalty for Breach of Settlement Agreement: The court held that the liquidated damages clause was an unenforceable penalty because the stipulated amount bore no reasonable relation to the actual or probable injury caused by the breach, as the parties did not engage in a proper pre-estimate of damages, thereby constituting an illegal penalty rather than a valid liquidated damage provision.
Mots-clés
Généré par l'IADispositions légales citées
Généré par l'IADécisions connexes
Généré par l'IAQuestions juridiques clés extraites par Legislator
Généré par l'IAThis provision is cited in the final order concerning the allocation of court costs.
Texte complet
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