Stoner v. Shultz

Citations

• 69 Wash. 687
• 125 P. 1026
• 1912 Wash. LEXIS 976

Syllabus

<p>Damages—Liquidated Damages or Penalty. A contract whereby the vendor of capital stock of a corporation agreed to surrender up three notes for $3,000 for cancellation, as liquidated damages in case of his failure to effect a settlement of claims aggregating only $1,800, is an agreement for a forfeiture or a penalty, and only the actual damages sustained by its breach can he recovered; since a larger sum agreed to he paid as security for a less sum cannot he considered as liquidated damages, even if so designated in the contract.</p>