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D terminated Wassenaar's (P) employment 21 months prior to his contract's expiration. P was then unemployed from April 1, 1978, to June 14, 1978, when he obtained employment and remained so employed until May 1981. The jury found that P was terminated without just cause. The jury awarded P $24,640, which was his salary for 21 months based on the direction of a stipulated damages clause. D appealed. The appeals court gave de novo review to that clause to determine if it was a penalty and thus void. The court ruled that the clause was unreasonable on its face as damages to an employee could be readily ascertained in the event of a breach by how long the party remained unemployed. The court of appeals did not consider any other facts than the actual contract language and the black letter law relating to the measure of damages for breach of employment contracts. P appealed.

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