Fox Motor Co. v. Dillard

The sole question presented by this record is whether the provision for “liquidated damages” as set forth in the contract sued upon is in reality a provision for a penalty or is in fact a mere provision for liquidated damages. “Damages are given as compensation for the injury sustained. If the parties agree, in their contract, what the damages for a breach shall be, they are said to be liquidated, and unless the agreement violates some, principle of law, the parties are bound thereby.” Code, § 20-1402. In Martin v. Lott, 144 Ga. 660-664 (87 S. E. 902), Justice Beck, speaking for the Supreme…