Section 3204 Of Article 10. Marketing Contracts From California Public Utilities Code >> Division 1. >> Part 4. >> Chapter 1. >> Article 10.
3204
. The bylaws or the marketing contract may fix, as liquidated
damages, specific sums to be paid by the member to the association
for the breach of any provision of the marketing contract regarding
the sale or delivery or withholding of gas and may provide that the
member will pay all costs, premiums for bonds, expenses, and fees, if
any action is brought upon the contract by the association. These
provisions are valid and enforceable in the courts of this state.
Provisions for liquidated damages are enforceable as such and shall
not be regarded as penalties.