Should she recover the money

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Reference no: EM131472407

Question: Tina Townsend, age twenty-five, a well-known comic, signed a contract for $20,000 with Stillman to perform at Stillman's Country Dinner Theater for five nights. Because Townsend had a drinking problem, a clause in the contract stipulated that she should not take a drink for the five nights she was to perform. Another clause stated that if Townsend were to drink and appear for her performances in an intoxicated condition, 10 percent of her salary would be withheld as liquidated damages. After having several drinks, Townsend made her opening night appearance.

Reviewers in the local newspapers described her as "a very stumbling but entertaining alcoholic." Despite the reviews, Townsend's performances filled the theater to capacity each night of her five-night engagement. Stillman, however, still withheld $2,000 of Townsend's salary, although she had appeared in an intoxicated state only on opening night. Townsend brought an action against Stillman to recover the $2,000 withheld from her salary. Should she recover the money?

Reference no: EM131472407

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