Seller v. Buyer: Enforceability of Liquidated Damages Clause Upon Contract Withdrawal

An individual contracted with a seller for the purchase of property, paying a deposit, but later sought to withdraw from the contract, prompting the seller to initiate proceedings to enforce the sale and retain the deposit as liquidated damages, pursuant to the contract's specific clause. The court upheld the lower court's decision to allow the seller to retain the deposit because the clause specifying the retention of the deposit upon the buyer's withdrawal constituted a penalty clause, and the parties had validly agreed to it as a prerequisite for the buyer's unilateral right to withdraw, meaning the clause was enforceable as agreed liquidated damages rather than a punitive penalty subject to judicial modification.