Rent Concessions and Illegal Contract Penalties in Texas


This article discusses penalty damages in residential leases in Texas. The sales pitch is a rent concession which is later reimposed if the buyer breaches. In contracts where the reimposed penalty reimburses the seller well beyond the consideration anticipated in the normal performance of the agreement, the reimposed discount is an illegal penalty. These contracts are pervasive but for the most part go unchalllenged.


Commercial Law | Consumer Protection Law | Contracts | Economics | Housing Law | Law and Economics

Date of this Version

October 2006