Legislator Jurisprudence & Législation
ATA/102/2007 • CJ GE ATA/102/2007 Généré par l'IA

Liquidated Damages Clause Enforceability Due to Damage Election Provision

Numéro de cause ATA/102/2007
Autorité / Tribunal
Juridiction Suisse · Canton de Genève (CH-GE)
Date de la décision
Issue du litige Rejeté (Dismissed)

Synthèse Legislator

Généré par l'IA

The 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'IA

Art. 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'IA
résiliation de contrat obligation de diminuer le dommage décision exécutoire contrat d’option clause de garantie d'effectivité responsabilité contractuelle pour les auxiliaires

Dispositions légales citées

Généré par l'IA
Généré par l'IA

Questions juridiques clés extraites par Legislator

Généré par l'IA
Art. 66 al. 1 LTF

Cited for the costs order, as the appeal was dismissed.

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