A liquidated damages clause specifies a predetermined amount of money that must be paid as damages for failure to perform under a contract.The amount of the liquidated damages is supposed to betheparties' best estimate at thetime they sign the contract of the damages that would be caused by the breach.

Comedian Pete Davidson asks fans attending his concert to sign a confidentiality and non-disclosure agreement prohibiting them from sharing information or opinions regarding the performance.If Davidson tests a joke and decides never to publicly perform it again, fans are not permitted disclose or share any information until he releases it to the public.To deter fans from breaching the contract, it carries a hefty $1 million liquidated damages clause.The agreement also allows his company to seize and destroy the content of smart phonesor other recording devices. Twitter and other contact information are requested in order to monitor help determine whether and which fans may have engaged in breach of contract.You must sign the contract in order to attend the concert.

Please review the attached contract and informationPete Davidson Confidentiality and Non-Disclosure Agreement.docxand discuss the following:

1.Would (or should) this contract be enforceable by the courts?Why or why not?

2.Is the liquidated damages clause a good deterrent for breach?Why or why not?