Connecticut Seal

General Assembly



January Session, 2007

LCO No. 7566



Offered by:


REP. TABORSAK, 109th Dist.

REP. FOX, 146th Dist.

REP. GODFREY, 110th Dist.


To: Subst. House Bill No. 6897

File No. 640

Cal. No. 515

Strike section 1 in its entirety and insert the following in lieu thereof:

"Section 1. (NEW) (Effective October 1, 2007, and applicable to contracts entered into, renewed or extended on or after said date) (a) No provision in a written contract for the purchase or lease of goods or services primarily for personal, family or household purposes that provides for the payment of liquidated damages in the event of a breach of the contract shall be enforceable unless (1) the contract contains a statement in boldface type at least twelve points in size immediately following such liquidated damages provision stating "I ACKNOWLEDGE THAT THIS CONTRACT CONTAINS A LIQUIDATED DAMAGES PROVISION", and (2) the person against whom such provision is to be enforced signs such person's name or writes such person's initials next to such statement. Nothing in this section shall validate a clause that is a penalty clause or is otherwise invalid under the law of this state.

(b) The provisions of subsection (a) of this section shall not apply to (1) contracts between a consumer and an agency of the state or any political subdivision of the state or of the federal government, (2) negotiable instruments, and (3) contract provisions for late fees, prepayment penalties or default interest rates. "