liquidated damages clause in Tennessee

1993The plaintiffs had paid more than fifty percent of the purchase price before defaulting, and the trial court held that the liquidated damages clause did not constitute an unenforceable penalty. 699 S.W.2d at 161 .

1992Noting that the purchasers’ total payments at the time of default exceeded fifty percent (50%) of the purchase price, the court refused to give effect to the liquidated damages clause in the contract, finding same to be “nothing more than or less than a forfeiture/penalty.” Id. at 164 .

2019Md. 1974), aff’d, 530 F.2d 968 (4th Cir. 1975); 9 Tennessee Jurisprudence, Damages, § 29 (1983). 5 Although we agree with Air Comfort’s position that Knestrick should not be allowed to recover liquidated damages in connection with this case, we do not find favor in its specific argument that liquidated damages are unavailable due to a withdrawal of a liquidated damages claim.

2013Guiliano v. Cleo, Inc., 995 S.W.2d at 98 .

1993If a contract “contains a number of stipulations of varying degrees of importance and a single sum is made payable for any breach, applicable alike to important and unimportant covenants, it will be treated as a penalty rather than liquidated damages, no matter what name is given it by the parties.” City of Nashville v. Nashville Traction Co., 142 Tenn. 475, 480 , 220 S.W. 1087 (1920).