Principle

CONTRACT LAW — Penalty Clause — Parties Bound by Agreement — Damages limited to contractual penalty provision where parties have pre-fixed limit

Area of law
CONTRACT LAW
Court
Supreme Court

This principle reinforces the binding nature of contracts freely entered into by parties. No party can seek remedies outside the contractual terms. Where the contract specifies compensation for termination, that is the exclusive measure. The court must enforce the agreement as written. The principle applies…

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