Canady v. Knox

Citations

• 43 Wash. 567
• 86 P. 930
• 1906 Wash. LEXIS 748

Syllabus

<p>Contracts — Construction — Termination. Upon the sale of a butchering business for the sum of $4,300, upon which $3,500 is paid, and a note given for the balance, in which the vendor agrees not to enter into the butchering business in the vicinity for a term of three years, and if he does so, that he will forfeit to the vendee the sum of $2,000, the contract is not rendered void by the payment of the note for the balance due by reason of a further clause in the written contract of sale to the effect that certain collateral shall he put up as security for the note (which was done) which was to he held as security by the vendor until the same was paid, during which time the vendor was to furnish the vendee with all beef cattle required, at certain stipulated prices, and that upon payment of the note the contract was to be void and cease to be in force; since it is clear that the parties, intended the clause vitiating the contract upon payment of the note, to apply only to the obligation to buy and sell beef cattle.</p> <p>Damages — Liquidated Damages — When Not Excessive. Upon the sale of a butchering business for $4,300, an agreement by the vendor to forfeit $2,000 in case he engaged in that business in the vicinity within three years, will not he held excessive or unconscionable in the absence of any evidence showing the extent of the damages.</p> <p>Damages — Liquidated—Penalty. Upon a sale of a butchering business for $4,300, an agreement that the vendor will not engage in that business in the vicinity for a term of three years, and will forfeit $2,000 in case of doing so, must he construed to he one for liquidated damages, and not a penalty.</p>