Penalties imposed by contract for any nonperformance thereof are void. This section does not void obligations penal in form such as heretofore have been commonly used, but it voids their penal clauses.

lawyer at desk

Ask a litigation question, get an answer ASAP!
Thousands of highly rated, verified litigation lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In South Dakota Codified Laws 53-9-4

  • Contract: A legal written agreement that becomes binding when signed.

Source: CivC 1877, § 955; CL 1887, § 3579; RCivC 1903, § 1273; RC 1919, § 894; SDC 1939, § 10.0703.

  Previous section
Next section  
 Chapter 9 Contents