Summary

Peter Vivian Daniel Van Buren v. Digges — Opinion of the Court

The clause of the contract providing for the forfeiture of ten per centum on the amount of the contract price, upon a failure to complete the work by a given day, cannot properly be regarded as an agreement or settlement of liquidated damages. The term forfeiture imports a penalty; it has no necessary or natural connection with the measure or degree of injury which may result from a breach of contract, or from an imperfect performance. It implies an absolute infliction, regardless of the nature and extent of the causes by which it is superinduced.
Source: Wikisource

Peter Vivian Daniel Van Buren v. Digges — Opinion of the Court

That in an action to recover the stipulated price on a special contract (to build a house, where the house, when built, has been accepted) , evidence cannot be offered to show a partial failure to perform the same, according to its terms. Neither can money paid to a stranger to complete the same or on account of said failure, nor any evidence of damages suffered by reason of such failure, be offered to reduce the said price, even though the same be specially pleaded, or notice by way of setoff, with a particular account thereof, be filed in the case.
Source: Wikisource

Peter Vivian Daniel Van Buren v. Digges — Opinion of the Court

In a defence like that attempted by the defendant in the Circuit Court, upon the essential justice and fairness of the acts of the parties, a positive immutable penalty could hardly be applied as a fair test of their merits.
In the third exception by the defendant, it is stated that the plaintiff, having given evidence to show that the defendant, whilst the house in question was being built, made a contract for an alteration in the style and finish of the plastering of the house, with a third person, and not with the plaintiff
Source: Wikisource

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