Truck Rent-A-Center, Inc. v. Puritan Farms 2nd, Inc.
Court of Appeals of New York
361 N.E.2d 1015 (1977)
Puritan Farms 2nd, Inc. (Puritan) (defendant) leased 25 new milk delivery trucks from Truck Rent-A-Center, Inc. (lessor) (plaintiff). The lessor was to service the trucks and Puritan was to make weekly payments. The lease included a liquidated damages provision stating that, upon Puritan’s breach, the lessor would be entitled to one-half of all the remaining rental payments due under the contract. In deciding upon this measure of damages, the parties contemplated the lessor’s substantial investment in purchasing the trucks, the uncertainty surrounding the lessor’s ability to re-rent or sell the trucks, and other costs incidental to a breach. After three years, Puritan terminated the lease agreement and returned the trucks to the lessor. The lessor sued Puritan to collect payment of the liquidated damages. The trial court found that Puritan had breached the agreement and that the liquidated damages provision was enforceable. The trial court calculated the liquidated damages to equal $88,677.60. The Appellate Division affirmed.
Rule of Law
Holding and Reasoning (Jasen, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 174,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.