Legal Update 2020
Instructor: John Henderson
Enforceability of a Contract of Adhesion
Proulx vs.1400 PA Ave SE, LLC, No. 16-CV-1200 Superior Court CAR-3639-14 (2019)
District of Columbia Court of Appeals
Facts: Appellant was buying property from appellee to open a pizza business. Parties entered into a contract of sale and a preoccupancy agreement. Appellant stopped paying rent, vacated the building and refused to go to settlement. Appellant filed to rescind the contract and sought the return of their deposit. Appellee filed a counter-claim that the contract was valid and sought forfeiture of the deposit as liquidated damages per the contract; they also sought back rent due.
Issue: Appellant argues that the court erred in (1) finding that the contract was not a contract of adhesion, and (2) concluding that the liquidated damages provision was valid.
Held: Superior Court ruled that the contract was valid, agreed with the forfeiture of deposit provision and awarded unpaid rent to appellee. Court of Appeals upheld all.