Penalty provisions in contracts prohibited.
D.C. Code § 26-909
in effect26-909. Penalty provisions in contracts prohibited.
In any contract made in pursuance of the provisions of this chapter it shall be unlawful to incorporate any provision for liquidated or other damages as a penalty for any default or forfeiture thereunder.
(Feb. 4, 1913, 37 Stat. 660, ch. 26, § 9.)
Source: Council of the District of Columbia (code.dccouncil.gov)URL: https://code.dccouncil.gov/us/dc/council/code/sections/26-909Fetched: 10/21/2026
