
    Muzak Corporation, Respondent-Appellant, v. George G. Trattner, Appellant-Respondent.
    Supreme Court, Appellate Term, First Department,
    December 1, 1960.
    
      Sidney Schütz and Edward J. McGullen for appellant. Jacob F. Gottesman for respondent.
   Per Curiam.

The contract provided for liquidated damages in the event defendant cancelled the agreement at the end of any yearly period. The provision for liquidated damages did not constitute a penalty. Its effect is to compensate plaintiff for permitting defendant to terminate his contractual obligations (McCready v. Lindenborn, 172 N. Y. 400 ; Norris v. McMechen, 135 Misc. 361 ; Silver Dresses, v. Parker, 73 N. Y. S. 2d 704).

The judgment should be modified by increasing the recovery to $430.83, with interest and costs, and as modified affirmed, with $25 costs to plaintiff.

Concur — Hecht, J. P., Steuer and Timer, JJ.

Judgment modified, etc.  