Truck Rent-A-Center, Inc. v. Puritan Farms 2nd, Inc.
Court of Appeals of New York
361 N.E.2d 1015 (1977)
Relevant factsFree
Puritan (defendant) breached its truck-lease agreement with the lessor (plaintiff), which contained a liquidated damages clause awarding half the remaining rental payments, reflecting the parties' negotiated estimate of the lessor's lost profit reduced for uncertainty about re-renting or reselling the trucks; the trial court calculated damages at $88,677.60 under this clause.
IssueFree
Whether an injured party can enforce a liquidated damages provision that provides for the payment of a sum of money that is grossly disproportionate to the amount of actual damages.