Liquidated Damages Clause Enforceability Due to Damage Election Provision
Synthèse Legislator
Généré par l'IAThe case involves a dispute over the enforceability of a contract provision stipulating liquidated damages following a termination without cause, where one party sought to recover actual damages despite the clause. The court reasoned that liquidated damages provisions are generally enforceable if they represent a reasonable forecast of the harm caused by the breach and are not a penalty; however, because the contract allowed the terminating party to avoid the liquidated damages by electing to pay actual damages, the provision was deemed an unenforceable penalty because it offered an option that negated its intended compensatory function by allowing the breaching party to escape the stipulated sum without demonstrating the impossibility of the forecast.
Regeste Legislator
Généré par l'IAArt. 66 al. 1 LTF; Liquidated Damages Clause Enforceability Due to Damage Election Provision: The court reasoned that liquidated damages provisions are generally enforceable if they represent a reasonable forecast of the harm caused by the breach and are not a penalty; however, because the contract allowed the terminating party to avoid the liquidated damages by electing to pay actual damages, the provision was deemed an unenforceable penalty because it offered an option that negated its intended compensatory function by allowing the breaching party to escape the stipulated sum without demonstrating the impossibility of the forecast.
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'IACited for the costs order, as the appeal was dismissed.
Texte complet
!" #$%&
&
! ! ! ! " ! !
#$ ! ! %!!& ' ! !
# # ! ! ( !! ) * ! & ) * !'(&#)$%&
*+,-*
23 ##&204%#+11-$5#'#6%#&44## ++ 4%# +11-$ 7 & #& 8&&)# 6#4&7 #& 9#*: ; < #% &# #& & # 9&//60+2*=< > &# #7 ?3 3 9#*: ; #7<$ #:) > :%$ & # #& 6 #775 7## #4$ &77# 8@ # # &# &77 #$ #*# A 75B$ 87#& 3
+3 ?&6&# #&A &#) 5?#B9#*:; ?<$ #:) > #$ 6&# #& A' #& # #& 6 &7&5#B 9#*: ; ' <$ #:) > # )7 $ &77##& & &7 #:& #&9#*:; ! <6 &# #& & # #% 20 4%# +11- 7& #4 " &C # #)#D6 # &4&7&#" #9 <$#"68@ &C # : +E1 7: "6 &) #& # & && #&65F #7 $#7 6 #4 )G # 3 6)## 6 7# #& "# &%# H "#4# 7#I6 # 6# H )$#"& #&68@ # &C 6# H 4###73
.3 +E& &5+11-$#7&& ##& ! & >6 #&&&##"6>&4#7 #&A%## B 6 &# #& & # #% 20 4%# +11-3 6 &# #&& #%# #%5%##77 4%&53 ##& " # 8 6 7 #3 68@ %# H #4# 8& #7: # > & %DJ&5 G&3 )5# # 5F #7 6%# >K )G**8 &> /3 6 #.#=&# ) G& %&7 +/ C# 2/E0 9#*: ; L M 2.E<%# 7#:2%#+11= 7 # "6&C 6 A7&N7#&# 8#" &#& 7& #46# H )C #4#B3
=3 2/ 75 +11-$ )7 & > 6 #& ##& ! 5#7 6 &# #& & # & //O0+*=$ 7& #4 " 7 C&## 6 ) &%&# 6# #&&& @&4&7# 6&C %&# " #$ 6%5 A):7 B %# #7 &% 2 %#+11= D 6 #.#= L # 6 &C && 3
,./+0,+11- *.,-*
6:$ %&J# 44 #%7 & #&68@ $7# #%# ## #7 #7 G&# # @ 68J&5 #3 & #&$ # %# #% 6 &# #& & #3 7# #& &%# H &#&77):I%8$& # # #& #& %# &%675 %#3
E3 2/C%#+110$ ?##"' & #4&7 #5"6# # %>&%#7 &# )7 >6 #& ##& ! 2+ 75+11-##"6>&4#7 #& 6 &# #&4## #%& ##%204%#+11- & &//60+2*=3
-3 +EC%#+110$ #& #4&7" # )> C)3
!
23 &+E& &5+11-& ##& 2+ 75+11- 7#& #4#+E7H77&#$& %5&# %3 6 )7 )&7 #59 3E- &# O&)# #&C###++&%752/=2** +1EI 3-.32 3&#&7## #%2+ 752/KE* * E 21<3
+3 6 #-/#2 $C## #&7## #%8) #&#& #3&$C## #& 7## #%&# &# 6&44#3
6:$ 675 # # #)$ J &7# # #7$ & > 6 #& ##& ! 5#7 6 &# #&& ## #)#3
.3 6 # . # = L$ &C & #& 5# & &7 6 G& %&7 &#% H &4&7 "6#& & 3 & 4&#$&& @&4&7# "H 6 &# #& & # % $ 7 " &C 6 7&N7#&# 8#"&#& 7& #46# H )C #4#3
3 ?&C#& $ 4## 7#:## &7: " & & >6# ##7: "6#
,./+0,+11- *=,-*
4#D 9 ,-2K,+11E +1 75 +11E ,-K=,+11+ 2+ &%75 +11+<3
53 ?& 67# &# # 2 %# +11=$ &C # #)#D &%# 6 "A):7 B 3
&C& & C#$ 7 6 5F #7 6 7: &&# > 7# #&7#9 !32+C%#2//.<## " #&6P#)& ##&6# H 5#& > # #&4# &44#D85# #775&$ ## " 9 . & &5 2//1<3 7# 7 # 211 7+ P#) & # 6 &# &77 7# #& 7#$ 7# &77 8)7 7##5 6:
9 ,EE/,+1112= 75+111<3
?6)# # #)$# #& 5"&C &# 6 " 7# #&# H &#&77 7#$%7 6# 65F #7 3 7# #& & 6)7 675 &# %# &&> 6# H )#"67 6&#)5F #7 " #&G& & #&#@ 68J&5# # &#&77#36# H )&776 7# #&$ &% & 6& #& 6 #& #& : ##: 6:$ "# D#) G& # &@ 3? # #"& >&#> 67##&&3
=3 # 4&$ & &# H 7# ##& ! 2+ 75 +11- $ 6 &# #& & # & //60+2*= 5#36J#&7& #7 6#7# & D# #7$:&" &# &7&& #) &&7& &"%# H &73 J # 4# &7 &C&# 7 &##7 675 # > & 7#: # > 7&7 Q' +O1113* 9 3K0 <3
RRRRR
,./+0,+11- *E,-*
$ !
+,-./0
%5&# C +E& &5+11-&# #7?3 3 & ##&&77##& &&7 #:& #& 2+ 75+11-I
-.10
67 I
##&&77##& &&7 #:& #& 2+ 75+11-I
5# 6 &# #& & #&//60+2*=#%204%#+11- 7 & #& 8&&)#6#4&7 #&I
&7&# #7?3 3$' #&# #&6 &7&5#9' <$ &#) 5 ?# 9 ?<$ ## " 7 & #& 8&&)# 6#4&7 #& #7 $ &C&# 7 &##7 $ 6 7&7 Q'+O1113*I
# "6#6 &6#7# I
# "$ &4&77 D # K+ #% &# 4 #5 4 20 C# +11E 9 '*? 20.3221<$ H H & C& "# #% & #4# #& *% #5 4$ %&# &7 #:&# 5#I77&#&&# ##"&#&$ 7& #4 7&J% & #) & &&7 #I# &# H #5 4$ 2111 2=$ %&# & & %&# &#" D &# #& O # =+ '3 H #: &#&& $#%&"&777&J%$&#% H C&# > O%&#I
&77#" H >!" #$%& & ##"O> &77##& & & 7 #: & #&$ 7 & #& 8&&)# 6#4&7 #& ## "6> ! '(&# )$ %& ' #&# #&6 &7&5#9' < &#) 5?#
9 ?<3
,./+0,+11- *-,-*
?#) ; !7&%J$# $!3J8:$!7Q#$!3 8#$!7&$ C)3
&7 #57## #4;
)44#:*C# C33#3; %#*# ; 3 3&%J
&#&4&7 H &77#"D #3
:%$ )44#:;
,./+0,+11-