oskidunker said:
So you favor breaking existing contracts before they expire?
Not that I'm in favor of breaking any particular contract at this moment, but in a sense, contracts were meant to be broken, if it maximizes the overall economic benefit of the parties.
The damages awarded for breach are intended to put the non-breaching party in the economic position it would have been in if the contract had been fulfilled. If a party is better off by breaching and paying those damages, then yes, the contract should be breached before it expires, that maximizes the economic benefit for both parties, for society.
Because we want the maximum economic benefit for society, penalty clauses for breaches are generally void. Liquidated damages clauses are allowed where actual damages are difficult to determine and the damages clause is a reasonable estimate of the damages for breach.
I think there would be great economic benefit to firing Larry Scott before his contract expires, no matter how much the conference has to pay, whether for breach or a buy-out amount in his contract. I'm in favor. OK, I lied, I am in favor of breaking a particular contract at this moment.