Kyle Bruno enters a contract with X Entertainment to be a stuntman in a movie. B
ID: 2479752 • Letter: K
Question
Kyle Bruno enters a contract with X Entertainment to be a stuntman in a movie. Bruno is widely known as the best motorcycle stuntman in the business, and the movie to be produced, Xtreme Riders, has numerous scenes involving high-speed freestyle street-bike stunts. Filming is set to begin August 1 and end by December 1 so that the film can be released the following summer. Both parties to the contract have stipulated that the filming must end on time to capture the profits from the summer movie market. The contract states that Bruno will be paid 10 percent of the net proceeds from the movie for his stunts. The contract also includes a liquidated damages provision, which specifics that if Bruno breaches the contract, he will owe X Entertainment $1 million. In addition, the contract includes a limitation-of-liability clause stating that if Bruno is injured during filming, X Entertainment's liability is limited to nominal damages. Using the information presented in the chapter, answer the following questions. One day, while Bruno is preparing for a difficult stunt, he gets into an argument with the director and refuses to perform any stunts at all. Can X Entertainment seek specific performance of the contract? Why or why not? Suppose that while performing a high-speed wheelie on a motorcycle, Bruno Is injured by the intentionally reckless act o fan X Entertainment employee. Will a court be likely to enforce the limitation- of-liability clause? Why or why not? What factors would a court consider to determine whether the $1 million liquidated damages provision constitutes valid damages or is a penalty?Explanation / Answer
Ans 1 The contract between both of them is a personal service contract, as this is a personal service contract so court is quite reluctant to grant specific performace of contract as mentioned in the question.In personal contract if an order is given to the party of the contract and he is not willing to perform still he is forced than it amounts to involuntary servitute and this is against the public policy. and generally cout is not interest to see these type of contacts.
Ans 2 As it is a stunt industry so limitation of liabilty contract is likely to be enforced. When there is clause mentioned in contract agreement made between the parties in which both are in bargaining positions that limitation of liabilty clause will be enforced.
Ans 3 If Bruno intentionally say no for performance which is likely to cause a material amount damage to X entertainment and x entertainment has performed his part of the contract correctly than court can consider it as damages. but if due to x entertainment negiligent behaviour and irresponsible act some injury is caused to burno and than burno says no to perform the stunt than court will not consider him liable. Ans than the court has to see whether the damages claimed are of material amount or negligible amount and than take a decision. So all these factors court has to review.
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