Federal Electric Co. v. National Service Stations

Plaintiff had judgment for $500, consisting of $90 due, $405 as liquidated damages, and $5 interest. The question is whether the-$405 represented liquidated damages or penalty.

In 1929, under written contract, plaintiff installed in defendant’s station an electric sign containing the one word “gas;” and agreed to service it. Defendant engaged to keep it for five years and pay plaintiff $15 per month, upon which payment and at the expiration of which time title would pass to defendant. After paying $140, defendant defaulted in payments and suggested that plaintiff remove the sign if it desired.…