Vendor Forfeiture Clause Unlawful Penalty

A vendor sold an object to a purchaser, with the sale agreement stipulating that the price would be paid in installments and that the contract would be automatically terminated if payments were missed, leading to the forfeiture of installments already paid, a clause the purchaser later challenged as abusive after defaulting on payments. The Court of Cassation quashed the lower court's decision, reasoning that a contractual stipulation mandating forfeiture of all prior installments upon non-payment of the final installments constitutes an unlawful penalty clause under the relevant civil code provisions, as it results in an unjustified and disproportionate enrichment for the vendor.