Truck Rent-A-Center, Inc. v. Puritan Farms 2nd, Inc.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• stating that a liquidated damages provision is unenforceable when it calls for payment grossly disproportionate to the probable loss
• “Liquidated damages constitute the compensation which, the parties have agreed, should be paid in order to satisfy any loss or injury flowing from a breach of their contract.”
• “In interpreting a provision fixing damages, it is not material whether the parties themselves have chosen to call the provision one for ‘liquidated damages,’ . . . or have styled it as a penalty.”
• “The rule is now well established. A contractual provision fixing damages in the event of breach will be sustained if the amount liquidated bears a reasonable proportion to the probable loss and the amount of actual loss is incapable or difficult of precise estimation.”

Source: CourtListener parenthetical corpus (CC0).