Hi, I need help ( course Business law)

liquidated Damageclauses are often found in contracts where the loss from the breach is difficult to calculate. In construction contracts, for example, the contractor's delay in completing the project will cost the developer money, but it is unknown how much. The loss would depend on the length of the breach, the other contractors, the bank, purchasers, etc. There are too many moving parts, in which case the developer might include a liquidated damage clause in the construction contract requiring the contractor to pay $200 for every day he is late completing the job. Liquidation clauses can also commonly be found in real estate sales contracts. This is due, in part, to the length of time between the creation of the contract and performance (often several months). If the buyer breaches during that time, the seller has lost the opportunity to sell the property to another purchaser. Re-listing the property after the breach does not mean the seller can ask for the same price. Market conditions have likely changed. Factors such as the supply of comparable homes, the attractiveness of the 'rejected' home, the economy, etc. will affect the new purchase price and thus the number of damages the non-breaching seller can seek from the breaching buyer. With so many moving parts, a seller might protect themselves by requiring a non-refundable deposit (10% of the purchase price) which the seller keeps if the buyer breaches. In this way, the seller does not have to sue and try to determine his actual financial loss due to the breach.

In the Kent State case, the University and the Coach agreed to aliquidated damageclause in the contract. When Coach Ford breached his contract, the University tried to enforce it. Ford argued that the clause was unenforceable because the amount was punitive. (Punitive damages are not permitted in breach of contract cases). The court set out two rules: damages must be difficult to calculate (see discussion above) and not punitive. The court then listed a series of reasons why both of these criteria were satisfied.

In the Discussion Board, discuss whether you agree or disagree with the court's analysis. Explain why?

Thank you so much.