Daugherty Cattle Co. v. General Construction Co.
Montana Supreme Court
839 P.2d 562 (1992)
Relevant factsFree
General Construction's predecessor defaulted on a $1,195,000 land installment contract with Daugherty (plaintiff) after paying over $1.24 million toward principal and interest, with a remaining balance of $338,000; the contract allowed Daugherty to retain all payments made as "reasonable rental for the use of the property and as liquidated damages" upon default, and the trial court granted Daugherty summary judgment to quiet title while excluding evidence of the property's reasonable rental value, prompting General's appeal.
IssueFree
Whether contractual damages for breach of a land installment contract need to have a reasonable relationship to the actual damages suffered on account of the breach.