Pre-School Contracts

[WDCMOM]

Has anyone successfully gotten out of a contract with a pre-school? Most of the schools require contracts that require you to pay the balance of your contract if you move your child from the school. If your child is moved based on concerns that you have as a parent - is there a way to get out of the contract without litigation. Please let me know if you have had a similar experience.

[Anonymous]

I have no first-hand experience with this. But legally, in order to get damages in a breach of contract case you have to have mitigated your own damages, if you could. Thus, if you they were able to fill the spot and not lose any money, they can't have damages resulting from lost tuition (although there may be other incidental damages). It's a basic principal of contracts that there shouldn't be a "penalty" or "punishment" for breaching a contract. Thus, their actual and reasonable loses are the only damages they should be able to get. But I don't have first-hand experience with preschool contracts in the real world.

[Anonymous]

I wouldn't assume the school wouldn't go after you if they filled the space. In the case at the attached link, the Maryland Court of Appeals held that the school had no duty to mitigate damages and enforced the liquidated damages provision in the school's contract. Of course your contract may be different than this one.

http://www.aisgw.org/data/files/News/HomepageNews/Opinion_Barrie_School_v._Patch_2007.pdf

[Anonymous]

13:37 again. I had heard about that case, but never read it before today. It would have been easy for the lower court to find that the liquidated damages clause was punitive and invalid. It's conclusion in that regard wasn't very well reasoned. Had the lower court realized that the appeals court was going to hold that there's no duty to mitigate where a valid liquidated damages clause is present, I think the lower court would have held otherwise and found that the liquidated damages was punitive and there was a duty to mitigate. It's a shame because the efficiency of breach theory that underlies contracts law is not supposed to provide a windfall for those who do nothing to mitigate their own damages. Just my .02.

[Anonymous]

BUMP

[Anonymous]

An acquaintance got out of a contract that wasn't strongly worded. Contract stated her child was going to attend school and family was responsible for making x number of payments. Contract didn't address departure from school or specify that parent was liable even in event of departure. The parent wrote a note saying they wouldn't pay any further and that was that.

[Anonymous]

PP here. Whoops, didn't realize this thread was 10 months old! But might come in handy since it's that time of year.