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Liquidated Damages Clause and the Scope of its Judicial Review

The Spanish Supreme Court Judgment October 10th 2007 decides a case regarding the judicial review of a liquidated damages clause included in a separation agreement, according to which the wife had to compensate her husband with 90,15 Euros per day she delays departing from the family home (72.211,60 Euros). The Supreme Court does not moderate this clause applying a consolidated case law about the section 1154 of the Civil Code: a liquidated damages clause can only be reduced if the breach of contract has less entity than the one anticipated.