Liquidated Damages

"1622. A penal clause is one by which the parties assess the damages in advance, stipulating that the debtor will suffer a penalty if he fails to perform his obligation.
A creditor has the right to avail himself of a penal clause instead of enforcing, in cases which admit of it, the specific performance of the obligation; but in no case may he exact both the performance and the penalty, unless the penalty has been stipulated for mere delay in the performance of the obligation.
1991, c. 64, a. 1622; I.N. 2014-05-01."

A lessor may avail itself of a clause of liquidated damages instead of enforcing the specific performance of the leasing contract; however, the lessor may not exact both the obligations due under the contract and the clause of liquidated damages unless the damages are stipulated for mere delay in the performance of the lesseeÕs obligations [article 1622]. The amount of the stipulated damages may be reduced if the lessor has benefited from partial performance of the contract or if the clause is abusive [article 1623].