Essential Supplements for Success in 1L Contracts:
1L Law School Contracts outline based on the following books:
Kemble (Theater) v Farren (Comedian)
Court of Common Pleas
6 Bing. 141, 130 Eng. Rep. 1234 [1829]
pg 163
Facts
Theater K with Comedian to perform shows for four seasons
Stipulation that if either party neglect or refuse the agreement or any part then they pay £1000
In second season comedian refused to act
P argues liquidated damages
D argues it is a penalty clause
Procedural history
Theater was awarded £750 but appealed for the £1000
– if the court had thrown out the damages clause they would have had to calculate a diferent way, expectation etc
– £750 was base on the LDC £1000/4 times 3 remaining seasons of the show
Rule
“penalties” are unenforceable (can the damages be easily calculated? is the clause too broad, any minute breach?
“liquidated damages” enforceable
Holding
Found that because the £1000 stipulation was for any minute breach that it was a penalty and unenforceable
Stuck with £750 award