This section contains the nature of the case and procedural background.

Kennerson (P) sued Burbank (D) for an alleged breach of an employment contract. There was a written agreement that was for five years. The contract also effectively transferred all authority and power to manage the affairs of the corporation to P. The contract practically gave P exclusive control of the operations of D. The contract had a cancellation provision at any time within one year by giving sixty days notice of termination but termination required the written consent of 80% of those persons to whom the stock of D was issued regardless of whether or not they continued to be shareholders, and also the majority of the board of directors. The lower court enforced the contract.

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