Liquidated Damages In Real Estate Agreements

Liquidated damages provisions must be given careful consideration when negotiating a real estate agreement. Liquidated damages provisions usually appear as “earnest money” or a “non-refundable deposit” to set forth the negotiated amount of money that a seller can retain if a buyer breaches a purchase and sale agreement. Buyers are generally entitled to a return […]

Commercial Forbearance Agreements: Borrower Considerations

            Forbearance is the act of temporarily refraining from taking action against someone or something.   In the commercial lending context, forbearance means the lender is refraining from exercising its remedies because the borrower defaulted on its loan.              Forbearance agreements can be simple and straightforward.  They can also be complicated contracts with many moving parts, […]

Protecting Limited Liability

A recent case in New York serves as an important reminder to follow corporate formalities to protect against “piercing of the corporate veil.”  In RPH Hotels 51st S. Owner, LLC v. Icon Parking Holdings, LLC, the defendant holding company was found liable for the debts of three wholly owned subsidiaries. Applying Delaware law, the Court […]