TRUCK RENT-A-CTR. v. PURITAN


41 N.Y.2d 420 (1977)

Truck Rent-a-Center, Inc., Respondent, v. Puritan Farms 2nd, Inc., et al., Appellants.

Court of Appeals of the State of New York.

Decided February 24, 1977.


Attorney(s) appearing for the Case

Jay H. Topkis and Steven Finell, New York City, for appellants.

Mark D. Lebow, Emilio A. Dominianni and Robert N. Hornick, New York City, for respondent.

Chief Judge BREITEL and Judges GABRIELLI, JONES, WACHTLER, FUCHSBERG and COOKE concur.


JASEN, J.

The principal issue on this appeal is whether a provision in a truck lease agreement which requires the payment of a specified amount of money to the lessor in the event of the lessee's breach is an enforceable liquidated damages clause, or, instead, provides for an unenforceable penalty.

Defendant Puritan Farms 2nd, Inc. (Puritan), was in the business of furnishing milk and milk products to customers

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