§ 8511 — Exclusive buy and sell requirements of bylaws; liquidated damages; enforcement

Delaware § 8511

• Jurisdiction: Delaware
• Title: 3
• Part: Cooperative Agricultural Associations or Corporations
• Ch. 85: CORPORATION LAW FOR COOPERATIVE AGRICULTURAL ASSOCIATIONS
• Subch.: Formation, Powers, Bylaws and Dissolution

Text

The bylaws may require common stockholders to sell all or any part of their specifically enumerated agricultural or other similar products, and to buy all or any part of their specifically enumerated supplies, exclusively through the association, but, in such case, shall specify a reasonable period in each year during which such stockholders, by giving notice prescribed in the bylaws, may withdraw and be released from their obligation to employ the services of the association in respect to such products and supplies. The bylaws or contracts, or both, may fix, as liquidated damages, specific sums to be paid to the association to reimburse it for any damages which it, or the stockholders, sustain by the failure of any common stockholder or other patron to perform any obligation to the association under the articles of association, the bylaws, or any contract with the association, and such provision shall be valid and enforceable in the courts of this State. A court of equity may grant an injunction to prevent breach of the contract and may decree specific performance thereof.

Legislative History

41 Del. Laws, c. 132, § 12 ; 3 Del. C. 1953, § 8511