Appellate Court Finds Liquidated-damages Clause Was Not a Penalty and Thus Was Enforceable
Mineo v. Lakeside Village of Davie, LLC, 983 So. 2d 20 (Fla. Dist. Ct. App. 2008)
Where a contract for the purchase of real property and construction of a residence gave the seller the option of retaining deposits and change order payments as liquidated damages in the event of the buyer’s default, or the seller could sue for specific performance at the purchase price plus interest as delay damages, the liquidated damages provision was not an unenforceable penalty because the contract did not provide the seller with the option to sue for actual damages (which would have change the character of the forfeiture as agreed damages).
