Seller Late Delivery Penalty Reduction
France (FR)
Synthèse Legislator
Généré par l'IAA contract for the sale of goods stipulated a clause requiring the buyer to pay a penalty for late delivery, and the seller subsequently delivered the goods late; the appellate court, finding the penalty clause stipulated an excessive amount relative to the actual damage suffered by the buyer, modified the penalty amount, which the Court of Cassation upheld, reasoning that the judge has the discretionary power to reduce an excessively high penalty stipulated in a contract, even if the parties agreed to its irrevocability, based on the principle that punitive stipulations must be proportionate to the actual prejudice sustained.
Regeste Legislator
Généré par l'IASeller Late Delivery Penalty Reduction: A contract for the sale of goods stipulated a clause requiring the buyer to pay a penalty for late delivery, and the seller subsequently delivered the goods late; the appellate court, finding the penalty clause stipulated an excessive amount relative to the actual damage suffered by the buyer, modified the penalty amount, which the Court of Cassation upheld, reasoning that the judge has the discretionary power to reduce an excessively high penalty stipulated in a contract, even if the parties agreed to its irrevocability, based on the principle that punitive stipulations must be proportionate to the actual prejudice sustained.