DCC 402/2004

The agency contract is considered to be a contract that may be annulled. The agreement of entitlement in the contract to a delay fine is deemed a penalty clause, in which the debtor bears the burden of proof of its non-existence. The penalty clause is dependent on the original contract and fails as a result of the contract cancellation. The contested judgment which dissolved the contract agreement and its application of the penalty clause to estimate compensation instead of correctly applying the law is deemed violation of the law and necessitates cassation.

Pursuant to the perusal of the documents, and the reading of the summary report, and after deliberation.

Whereas the cassation has fulfilled all formal conditions.