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

Posik (P) and Layton (D) were lesbians who entered into a written contract to govern their personal relationship with each other. P was to give up her job and move in with D and P was to take care of the home while D would provide all the support for both of the parties. D agreed to make a will leaving her entire estate to P and would maintain bank accounts and other investments in P's name. P would loan D $20,000 by a written note. The agreement provided that P could cease residing with D if D failed to provide support, if she requested in writing that D leave for any reason, is D brought a third party into the home for more than four weeks without the consent of P or if D's abuse, harassment or abnormal behavior made P's continued residence intolerable. In any such event, D agreed to pay P $2,500 per month for the remainder of her life as liquidated damages. P was 55 at the time the agreement was drawn up and entered into. Four years after the execution of the agreement, D announced that she wished to move in with another woman. P objected, and D moved out and took up residence with the other woman. D served a three-day eviction notice on P. P moved out and sued to enforce the terms of the agreement. The court found the $2,500 monthly payment a penalty and unenforceable. The court found waiver by P of a breach by D of the contract and a breach by P in that she failed to continue to perform housework. The court found that P was entitled to quantum meruit but that such an award was offset by the benefits P received by living with D. The court awarded P judgment on her note to D. P appealed.

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