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Contracts Keyed to Frier
NPS, LLC v. Minihane
Citation:
886 N.E.2d 670 (2008)Facts
Plaintiff sold a ten-season license for two luxury seats at Gillette Stadium to Defendant. The license agreement required Defendant to pay $3,750 annually for each of the 10 football seasons. After Defendant failed to pay for the second season, an acceleration clause in the contract required him to pay the entire balance for the remaining years on the license. When Defendant refused to pay the balance owed, Plaintiff filed suit seeking recovery of the money. Defendant argued the acceleration clause in the license agreement was an unlawful penalty. The trial court agreed and refused to enforce the provision because the amount due, approximately $65,000, was grossly disproportionate to a reasonable estimate of actual damages made at the time of contract formation. Instead, the court awarded Plaintiff damages of $6,000. Plaintiff appealed.
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Topic Resources
Topic Outline
DamagesTopic Refresher Course
Liquidated Incidental and Consequential Damages