School District No. 8R (District) (defendant), a midsize district, hired Robert George (plaintiff) to teach math and coach football under a three-year contract. The contract provided that George’s salary for teaching would be $11,300 a year, and that George would receive another $2,000 for coaching football. During George’s first year under this contract, however, the District fired George from coaching football. Soon afterward, the District sent its annual letters asking teachers to confirm whether they would be continuing under their contracts. George’s letter stated that his salary would be $11,300 for the following school year. George wrote back that he would teach the following year if he received the additional $2,000 provided for in his contract. The District took this as a rejection, and filled George’s position. George sued the District for breach of contract. George asked for specific performance requiring the District to reinstate George. As the case continued, George worked as a substitute teacher in Reedsport district. Reedsport offered George a full-time position, but George turned it down to keep open the possibility of the court ordering reinstatement. Ultimately, the trial court found that the District had breached the contract. The court ordered that the District reinstate George for the third year of the contract, and pay damages for the then-passed second year. The second-year damages were the difference between George’s contract salary and George’s substitute-teaching earnings from that year. The District appealed.