Jacobs v. Shannon Furniture Co.

Citations

• 22 Ohio C.C. Dec. 51

Syllabus

<p>CONTRACTS — DAMAGES.</p> <p>1. Whether a- Penalty or Liquidated Damages were Intended will be Determined from Whole Contract and Circumstances at Time of Contract.</p> <p>in determining whether a stipulation in a contract is a penalty or liquidated damages, the court will consider it along with the other provisions and general scope 'and subject-matter of the contract and the circumstances from the standpoint of the parties at the time of the contract, and not ex post facto, and from these determine whether the parties intended to fix a fair and just amount for the actual damages likely to arise or an arbitrary amount as mere penalty to secure performance.</p> <p>2. One Thousand Seven Hundred and Fifty Dollars Liquidated Damage in Five Year Contract of Employment, Valid.</p> <p>In a contract of employment entered into by a mercantile establishment with a person for general manager for term of five years at $1,800 per year, a.provision for liquidated damage in sum of $1,750 should that person be discharged within twenty-five months- is a reasonable adjustment of what would be considered by parties at time of contract as the actual damages that might be contemplated, and will be upheld as' liquidated damage.</p> <p>[Syllabus approved by the court.]</p>