Seller's Right to Retain Down Payment Upon Purchaser's Breach Despite Judicial Resolution
Synthèse Legislator
Généré par l'IAA party contracted to purchase property, making a down payment, but subsequently defaulted on fulfilling the obligation to execute the final deed, leading the seller to request judicial resolution of the sale, retention of the down payment as damages, and compensation for losses. The Court of Cassation upheld the lower court's decision, reasoning that the contractual clause stipulating the forfeiture of the down payment upon non-execution of the sale by the purchaser, even if the seller chose judicial resolution instead of automatic termination, constituted a valid and enforceable penalty clause to compensate for the seller's prejudice resulting from the purchaser's breach.
Regeste Legislator
Généré par l'IASeller's Right to Retain Down Payment Upon Purchaser's Breach Despite Judicial Resolution: The Court of Cassation upheld the lower court's decision, reasoning that the contractual clause stipulating the forfeiture of the down payment upon non-execution of the sale by the purchaser, even if the seller chose judicial resolution instead of automatic termination, constituted a valid and enforceable penalty clause to compensate for the seller's prejudice resulting from the purchaser's breach.