Question
The Supreme World Tower is a seventy-two-story luxury condominium being constructed in Los Angeles California. Before the building was constructed, Johny Nazu, a billionaire, contracted
The Supreme World Tower is a seventy-two-story luxury condominium being constructed in Los Angeles California. Before the building was constructed, Johny Nazu, a billionaire, contracted to purchase a condominium unit on the top floor of the Supreme World Tower. The purchase price of the penthouse condo unit was $16M. As part of the purchase contract, Nazu was required to make a nonrefundable down payment of 25% of the purchase price in the amount of $4,000,000. In September, 2018, before the building was complete, terrorists attacked Los Angeles by flying two planes into America's Commerce Center, the city's largest building near the Supreme World Tower. Although the Supreme World Tower was not impacted by the terrorist attack, subsequently Nazu sent a letter to Premier Condos, owner of Supreme World Tower, attempting to rescind the purchase agreement because of the terrorist attack. Nazu later did not show up to the closing on October 10, 2018. Nazu believed that it would be too dangerous to live in the building following the terrorist attack. Premier Condos however, did not accept the attempted rescission, terminated the purchase agreement, and retained the 25% down payment. Nazu sued Premier, alleging that the money should be returned. Premier defended, arguing that the 25% nonrefundable down payment was an enforceable liquidated damages clause. Is the liquidated damages clause enforceable?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started