Keck v. Bieber

Citations

• 148 Pa. 645
• 24 A. 170
• 1892 Pa. LEXIS 1045

Syllabus

<p>Contract — Penalty—Liquidated damages — Numerous covenants.</p> <p>The presumption is that a lump sum named by the parties to a contract is a penalty rather than liquidated damages; the name by which it is called is of slight weight, the controlling elements being the intent of the par- j ties, and the special circumstances of the case. Where there are numer- [ ous covenants of the most varied kinds and importance, and yet the sum named is payable for the breach of any, even the least, it is a penally.</p> <p>Indemnity bond — Damages, when not limited to amount named in bond.</p> <p>It seems, that, on a covenant by an assignee of a mining lease, to indemnify the assignor against claims of a third party and against damages to the neighbors by the operation of washing, the recovery will not be limited to the amount named in the bond which contains the covenant.</p> <p>Indemnity on forfeited lease — Recovery in one or many suits.</p> <p>It seems, that where an assignee of a mining lease has allowed it to become forfeited and thus disabled himself absolutely and permanently from performance of his covenants contained in a bond given to his assignor, the assignor may sue from time to time for royalties due and other damages, or treat the contract as rescinded, and claim damages in one action for the entire breach.</p>