Bilz v. Powell

As said in the majority opinion, no rule can be formulated which will serve as a universal test by which to ascertain whether a sum fixed by contract shall be treated as liquidated damages, or as a penalty in case it is violated. In a measure, at least, the character of the agreement controls. The test applied by the majority is correct if the agreement was such that it was applicable. In the opinion of the writer it is not.

The contract contained several .independent covenants on the part of the plaintiff, and Bilz is not entitled to recover the sum named as liquidated damages unless it be…