Mississippi courts generally found that forecasted damages in commercial property sales contracts were enforceable. However, the law in this area is confused by two factors. First, the courts applying Mississippi law have not separated cases involving forecasted damages clauses in contracts for the sale and purchase of commercial real estate from cases involving contracts for the sale and purchase of residential real estate, leases, leases, contracts. on construction and even settlement agreements. concluded in connection with divorce. Second, the court may decide not to enforce an otherwise valid damages clause if it would be unfair, which tends to shift the focus of time for determining the reasonableness of the forecasted damages clause from the date of the contract to the date of the breach.
Reprinted with permission. Full article for “Forecasted damages clauses in commercial real estate contracts in Mississippi, “was published in the September 2021 ALI CLE Magazine. Practicing real estate lawyer.