The agreement contained a liquidated damages clause that held, “Should Employee voluntarily terminate or the Employer terminates his/her employment … within one year of executing this Agreement, Employee agrees to pay the employer … liquidated damages.” As formulated by the agreement’s terms, Texas Inpatient claimed that Tabe owed it $34,000. Tabe refused to pay, and Texas Inpatient filed suit.

Read the language of the agreement carefully. Had all conditions precedent been satisfied, and was Tabe therefore bound by the agreement?

Why or why not? How did the court rule?