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Case Study Kent State University Vs Ford

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Case Study
Kent State University v. Ford
Background
In April 2010, Gene Ford signed a 5 years contract which includes a liquidated damages clause with Kent State University to work as a head coach of a basketball team with a total salary of $300,000. The liquidated damages clause state that if Ford quit before the end of the contract, he need to pay a liquidated damages to the school in an amount equal to his salary ($ 300,000) multiplied by the number of years remaining on the contract. However, in March 2011, Ford quit his job at Kent State University and accepted the same position at Bradley University, with a total annual salary of $700,000. After Kent State University recognizes his action, Kent State University sues Ford for the liquidated damages according to the liquidated damages clause in the contract, which had been agreed by both partied. But Ford argued that it is a penalty in order to prevent him from accepting other employment, and it should be unenforceable.
Factor to be analyzed …show more content…
The first one is whether the damages are uncertain as to the amount and difficult to prove. The court agreed that calculation of the damages resulting from the breach of contract by Ford was very difficult because the departure of the head coach of a basketball team will cause several negative effects. The court also noted that the liquidated damages clause was based on the continued employment of Ford, and the court agreed that he would have many contribute to the team if he continues the job. So, the court concluded that the damages from Ford’s breach cannot be proven

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