Creditor v. Debtor (Website Listing Liquidated Damages)

In a debt collection matter where a creditor sought enforcement based on a written contract acknowledging debt for a website listing, the dispute concerned the extent to which a contractually agreed-upon liquidated damage clause (stipulated at 70% of the net price upon early termination) served as a provisional title for legal authorization. The court reasoned that the debt enforcement judge must summarily determine the permissible amount of a penalty or liquidated damage sum in the authorization procedure pursuant to relevant articles of the Debt Enforcement and Bankruptcy Act and the Code of Obligations; finding that the lower court's reduction of the liquidated damages to 15% of the net price was appropriate because, given the immediate cancellation just one business day after signing, this amount reasonably covered initial administrative costs while preventing compensation for work not yet performed, aligning with the principle that excessively high penalties must be judicially moderated.