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Sebastian v. Floyd
Kentucky Supreme Court
585 S.W.2d 381 (1979)
Sebastian contracted to buy a house from the Floyds for a down payment and monthly payments of $120. The contract contained a forfeiture clause providing that if Sebastian failed to make a monthly payment and remained in default for 60 days, the Floyds could terminate the contract and keep all the payments made to that point as liquidated damages. Over the first 21 months that Sebastian was in possession, she missed seven payments. The Floyds brought suit in the Kenton Circuit Court seeking enforcement of the forfeiture clause.
Rule of Law
Holding and Reasoning (Aker, J.)
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