Selected Cases by Article & Issues
Article 7.4.1312 Cases
(1) Where the contract provides that a party who does not perform is to pay a specified sum to the aggrieved party for such non-performance, the aggrieved party is entitled to that sum irrespective of its actual harm.
(2) However, notwithstanding any agreement to the contrary the specified sum may be reduced to a reasonable amount where it is grossly excessive in relation to the harm resulting from the non-performance and to the other circumstances.
(2) However, notwithstanding any agreement to the contrary the specified sum may be reduced to a reasonable amount where it is grossly excessive in relation to the harm resulting from the non-performance and to the other circumstances.
| Number | Issue | # Cases |
|---|---|---|
| 1 | Validity of agreed payment for non-performance | 6 |
| 2 | Agreed sum "grossly excessive" in relation to actual harm | 3 |
| 2.1 | Reduction of agreed sum | 5 |
| 3 | Agreed payment for non-performance and right to request performance in natura | 0 |
| 4 | Agreed payment for non-performance and right to claim damages for further harm | 1 |
| 5 | Agreed payment for non-performance and exemption clauses | 0 |
Total Cases in the database 1485