The Fretwells (plaintiffs) contracted with Protection Alarm Company (defendant) to secure and monitor the Fretwells’ home. The Fretwells’ contract with Protection Alarm included a provision that limited Protection Alarm’s liability to $50 in the event of a breach. One night, Protection Alarm received a signal from the Fretwells’ home and notified the police. A Protection Alarm employee arrived at the home and spoke with the police, who said that there was no threat. Because of this, the employee did not check the inside of the home, did not check the premises, and did not check the phone line that the alarm system was connected to. If the employee had checked the phone line, the employee would have discovered that the phone line had been cut. After the employee and the police left the home, burglars entered and stole property worth over $91,000. The Fretwells brought suit to recover for the loss, and the lower court found in favor of the Fretwells. Protection Alarm appealed.