Quote:
Originally Posted by kepp
Also, the money doesn't really come in the form of payments so much as from revenue the Big12 withholds from CU/NU, right? So, the money WILL be withheld, and they'd have to go to court to get it back.
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Yep. The only chance I think they would have (again, not a lawyer) is to make an equity argument that this clause is so grossly unfair that it would lead to unjust enrichment.
As I understand it, "equity" is an unpredictable squirrelly area of the law that tries to address something that is blatantly unfair no matter what the contract may say. For example, if your cell phone contract had a termination penalty of 10 million dollars buried in the fine print, that would get thrown out because of equity. (the "damage" to the cell phone company is clearly nowhere close to 10 million dollars, and the fee is hilariously high)
However, this is the University of Nebraska we are talking about here. Not some little old lady suckered into a bad contract by an unethical salesman. They have access to some of the best legal advice in the country. Plus, the "damages" in the contract do not sound highly unreasonable to me that it would trigger an equity argument. Damages are uncertain, and forgoing a share of revenue for 1 or 2 years sounds like a reasonable remedy.