Reid v. Auxier

BRIGHTMIRE, Judge.

Two fundamental questions arise in this review. One, is a liquidated damages provision in a real estate sales agreement valid? Two, does the contract here prevent the sellers from pursuing any remedy provided by law? The trial court held that the liquidated damages clause in the parties’ sales contract was valid and prohibited plaintiffs from obtaining more than $2,500 for buyers’ refusal to close the sale.

We hold, however, that to the extent the liquidated damages agreement purports to be binding on either party it is against public policy and void. We further hold that…