The BUSKLAW Newsletter

                                                   This Photo by Unknown Author is licensed under CC By-SA In last month's newsletter , we determined that Michigan law doesn't recognize the concept that "unreasonable" or adhesion contracts are unenforceable. But there is a caveat: a liquidated damages contractual provision must be reasonable to be enforceable.  A liquidated damages provision is a term of art in the legal world. It applies when, according to Professor Bryan Garner , the parties to a contract agree in advance on the measure of damages to be assessed if a party defaults. Liquidated damages provisions are common in employee non-competition agreements, and it was that clause in one such agreement that Kent County Circuit Court Judge Christopher Yates examined in the case of Alpha Automotive v Cunningham Chrysler of Edinboro. The facts of the case are simple. Cunningham  is a car dealer who contracted with Alpha to conduct promotional events to sel