A person, GF joined a university, KS as a head coach for men’s basketball team with a five-year contract and with a salary of &&#35;36;300,000. In case of breach of contract by GF, he will be liable to pay liquidity damages that will be equal to the salary received by him multiplied by the number of years remaining for the expiry of the contract. GF left the college four years before the termination of the contract. GF joined another university B at a salary of &&#35;36;700,000. University KS filed a suit in Ohio state court, against GF. The court enforced the liquidity damages clause and awarded the university &&#35;36;1.2 million. GF appealed arguing that the liquidity damage clause was an unenforceable penalty. To explain: The impact of the record of the basketball team on the decision of the court.

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Chapter 13, Problem 1CT

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Case summary:A person, GF joined a university, KS as a head coach for men’s basketball team with a five-year contract and with a salary of &#36;300,000. In case of breach of contract by GF, he will be liable to pay liquidity damages that will be equal to the salary received by him multiplied by the number of years remaining for the expiry of the contract. GF left the college four years before the termination of the contract. GF joined another university B at a salary of &#36;700,000. University KS filed a suit in Ohio state court, against GF. The court enforced the liquidity damages clause and awarded the university &#36;1.2 million. GF appealed arguing that the liquidity damage clause was an unenforceable penalty.

To explain: The impact of the record of the basketball team on the decision of the court.

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