Section 70 Contract Law

• Library: Motor Vehicle 2011

Under the basic principles of contract law, a lease provision accelerating all remaining lease payments on default and also permitting repossession of the car may be attacked as a penalty. Fairfield Lease Corp. v. Marsi Dress Corp., 303 N.Y.S.2d 179 (N.Y. Civ. Ct. 1969). The liquidated damages clause in John Deere Leasing Co. v. Blubaugh, 636 F. Supp. 1569 (D. Kan. 1986), was also held to be a penalty and, therefore, substantively unconscionable...