Knight signed a lease specifying that, if the $400-per-month rent was not received by the fifth of each month, Knight would owe the landlord $25 as liquidated damages, for every day that the rent was late. In January, Knight failed to pay the rent until the 21st of the month. The landlord insisted that Knight pay $800 because Knight owed $400 for the rent and $400 in late charges. What is most likely to be a court’s ruling?

Respuesta :

Answer and Explanation: From the given case/scenario we can state that the court is most likely to rule that these late charges or fine tends to constitute a penalty since they are excessive . The law that tends to govern most of the penalties is considered to be a slight exception to the general rule of law which tends to preserve the freedom of contract,and thus allowing the parties wide freedom in order to agree to the terms and points of contract.