Seller Penalty Clause Inapplicable Without Proof of Main Obligation Breach
Synthèse Legislator
Généré par l'IAA contract for the sale of a business included a clause stipulating a penalty payable by the seller for failure to provide the buyer with a list of clients, but the buyer failed to invoke this clause and instead sued for breach of the principal obligation of transfer, which the court found was not properly established, leading to the rejection of the appeal because the lower court correctly found no basis to grant the requested damages based on the asserted breach, rendering the contractual penalty clause moot in the absence of proof of the actual failure to perform the main obligation.
Regeste Legislator
Généré par l'IASeller Penalty Clause Inapplicable Without Proof of Main Obligation Breach: A contract for the sale of a business included a clause stipulating a penalty payable by the seller for failure to provide the buyer with a list of clients, but the buyer failed to invoke this clause and instead sued for breach of the principal obligation of transfer, which the court found was not properly established, leading to the rejection of the appeal because the lower court correctly found no basis to grant the requested damages based on the asserted breach, rendering the contractual penalty clause moot in the absence of proof of the actual failure to perform the main obligation.