Seller v. Agent: Deposit Forfeiture as Unproven Penalty

A buyer entered into a contract to purchase a building, depositing a sum with the seller's agent as a security for the sale, but the buyer later refused to proceed with the purchase. The seller sued the agent to recover the deposit, arguing that the buyer's refusal constituted a breach that forfeited the deposit as stipulated in the agreement. The court dismissed the seller's appeal, holding that the contractual clause making the deposit forfeit upon the buyer's withdrawal was a penalty clause, and since the seller had not proven any actual damage resulting from the buyer's non-performance, the court correctly applied the principle that the seller could not retain the deposit without demonstrating actual loss.