Streeter v. Rush

Citations

• 25 Cal. 67

Syllabus

<p>Liquidated Damages—Penalty.—Streeter e sold to Rush his butcher shop, tools, etc., at Suisun, and in his contract of sale, entered into this covenant with Rush : “ I also bind myself in the sum of five hundred dollars to said Rush, not to go into the butchering business in said Suisun, without the consent of said Rush, in any manner whatever.” Held, that the five hundred dollars mentioned in the covenant, are to be regarded as liquidated damages, and not as penalty.</p> <p>Id.—The question whether a specified sum mentioned in a contract, to be paid by either party in the event of its violation, is liquidated damages, or a penalty, must be determined by the intention of the parties, to be ascertained from a consideration of the whole contract.</p>