Section 8 Liquidated Damage Clause

• Library: Damages 2012

A liquidated damage clause in an employment contract has been held to be enforceable. In Begley v. Werremeyer Associates, Inc., 638 S.W.2d 817, 820 (Mo. App. E.D. 1982), the employment contract included a fixed monthly salary and a bonus provision. The liquidated damage clause stated that, if the employer violated the contract by dismissing the employee without cause before the termination of the contract, the employee could recover his lost monthly wages due under the remaining term of the contract but not...