Details

Written by Lou Genovese

Created: 19 January 2013

Details

Written by Lou Genovese

Created: 19 January 2013

Details

Written by Lou Genovese

Created: 19 January 2013

In early December, the Massachusetts Appeals Court affirmed a 2008 decision of the Superior Court in the case of NRT New England, Inc. d/b/a Coldwell Banker Residential Brokerage v. Ashby C. Moncure, 24 Mass. L. Rep. 181 (2008). In question was the enforceability of the liquidated damages clause within the terms of a Purchase and Sale Agreement. In March 2004, the defendant and Seller, Ashby C. Moncure (“Moncure”), contracted with Coldwell Banker to list certain real estate. Subsequently, a Purchase and Sale Agreement was executed by Moncure and the Buyer, Plain Road. At that time, Plain Road placed a deposit of $92,500.00 with Coldwell Banker to be held in escrow. The terms of the Agreement contained a standard liquidated damages clause as follows:

Read more: LIQUIDATED DAMAGES CLAUSES: A QUESTION OF ENFORCEABILITY