Adolph Tode, Respondents v. Lena Gross, Appellant

Summary

The Court affirmed the judgment awarding the plaintiffs $5,000 stipulated damages for breach of a covenant. It held that the covenant restricting the defendant and her agents from manufacturing, selling, or using the cheese trademarks was enforceable and not contrary to public policy. The Court also concluded that the stipulated damages provision was a valid liquidated damages clause, and the use of the word “penalty” was not controlling.