JURITEXT000006953116 Généré par l'IA

Contractual Penalty Clause Enforcement and Judicial Modification

Numéro de cause JURITEXT000006953116

Autorité / Tribunal Cour de cassation

Juridiction

France (FR)

Date de la décision 1960-01-28

Issue du litige Rejeté (Dismissed)

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Synthèse Legislator

Généré par l'IA

A dispute arose concerning the application of a contractual penalty clause following a failure to perform an obligation by the agreed-upon deadline. The lower court had reduced the stipulated penalty, finding that the non-performance had caused no actual prejudice to the creditor, which was contrary to the contract's clear terms. The high court quashed this decision, reasoning that a contractual penalty clause, unless explicitly authorized by law for judicial modification, establishes a pre-determined indemnity for non-performance and cannot be altered by a judge based on the assessment of actual damages suffered, thereby upholding the principle of the autonomy of the parties' will in contract law.

Regeste Legislator

Généré par l'IA

Contractual Penalty Clause Enforcement and Judicial Modification: The lower court had reduced the stipulated penalty, finding that the non-performance had caused no actual prejudice to the creditor, which was contrary to the contract's clear terms. The high court quashed this decision, reasoning that a contractual penalty clause, unless explicitly authorized by law for judicial modification, establishes a pre-determined indemnity for non-performance and cannot be altered by a judge based on the assessment of actual damages suffered, thereby upholding the principle of the autonomy of the parties' will in contract law.