43-16-134 - Provisions of marketing contracts Liquidated damages Injunction against breach. - Tennessee Statutes

43-16-134. Provisions of marketing contracts Liquidated damages Injunction against breach.

(a)  The bylaws or the marketing contract may fix, as liquidated damages, specific sums to be paid by the member or stockholder to the association upon the breach by the member or stockholder of any provision of the marketing contract regarding the sale or delivery or withholding of products, and may further provide that the member will pay all costs, premiums for bonds, expenses, and fees, in case any action is brought upon the contract by the association. Any such provisions shall be valid and enforceable in the courts of this state. Such clauses providing for liquidated damages shall be enforceable as such and shall not be regarded as penalties.

(b)  In the event of any such breach or threatened breach of the marketing contract by a member, the association shall be entitled to an injunction to prevent the further breach of the contract and to a decree of specific performance thereof. Pending the adjudication of such an action and upon filing a verified complaint showing the breach or threatened breach, and upon filing a sufficient bond, the association shall be entitled to a temporary restraining order and preliminary injunction against the member.

[Acts 1923, ch. 100, § 19; Shan. Supp., § 2534a59; Code 1932, § 3817; T.C.A. (orig. ed.), § 43-1835.]