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MUZAK CORP. v. TRATTNER

28 Misc.2d 504 (1960)

Muzak Corporation, Respondent-Appellant, v. George G. Trattner, Appellant-Respondent.

Supreme Court, Appellate Term, First Department.

December 1, 1960

Attorney(s) appearing for the Case

Sidney Schutz and Edward J. McCullen for appellant. Jacob F. Gottesman for respondent.

Concur — HECHT, J. P., STEUER and TILZER, JJ.

Per Curiam.

The contract provided for liquidated damages in the event defendant cancelled the agreement at the end of any yearly period. The provision for liquidated damages did not constitute a penalty. Its effect is to compensate plaintiff for permitting defendant to terminate his contractual obligations (McCready v. Lindenborn, 172 N.Y. 400; Norris v. McMechen, 135 Misc. 361; Silver Dresses, v. Parker, 73 N.Y.S.2d 704).

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