JURITEXT000006953700 Généré par l'IA

Vendor v. Purchaser: Validity of Liquidated Damages Clause in Installment Sale Contract

Numéro de cause JURITEXT000006953700

Autorité / Tribunal Cour de cassation

Juridiction

France (FR)

Date de la décision 1960-04-23

Issue du litige Rejeté (Dismissed)

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Synthèse Legislator

Généré par l'IA

A contract stipulated that the vendor would transfer ownership of a property to the purchaser upon full payment of the price in installments, and that in case of default by the buyer, the contract would be automatically terminated, with the vendor retaining all sums already paid as damages; the purchaser, having defaulted on payments, challenged the automatic termination clause, arguing that the retention of paid installments constituted an excessive penalty, but the court rejected this claim, reasoning that the clause was valid as a contractual stipulation for a liquidated damage clause that was not manifestly disproportionate and thus represented a lawful pre-estimation of damages resulting from the breach of the contract.

Regeste Legislator

Généré par l'IA

Vendor v. Purchaser: Validity of Liquidated Damages Clause in Installment Sale Contract: A contract stipulated that the vendor would transfer ownership of a property to the purchaser upon full payment of the price in installments, and that in case of default by the buyer, the contract would be automatically terminated, with the vendor retaining all sums already paid as damages; the purchaser, having defaulted on payments, challenged the automatic termination clause, arguing that the retention of paid installments constituted an excessive penalty, but the court rejected this claim, reasoning that the clause was valid as a contractual stipulation for a liquidated damage clause that was not manifestly disproportionate and thus represented a lawful pre-estimation of damages resulting from the breach of the contract.