Uncertain Damages for Breach of a Leasing Contract
In Downtown Harvard Lunch Club v. Rasco, 201 Misc 1087, 1091, 107 N.Y.S.2d 918 (S. Ct. N.Y. 1951), the Court held that in a contract for leasing a lunch club, the damages that would be suffered by the plaintiff if the defendant was to breach was uncertain at the creation of the contract, due to the variable of when the defendant would breach and the availability of other similar lunch club facilities at the time of the breach. See, Downtown Harvard Lunch Club, 201 Misc at 1091.
Therefore, the "parties reasonably and properly could decide to estimate and fix in advance a stated sum which would be regarded as proper compensation for a breach." Id.