Chapter 3

Question 1

3 requirements for employment contract

Answer 1

1. offer
   - can be subject to condition precedent
2. acceptance
   - offer must be firm & unequivocal
3. quid pro quo
   something in exchange for performance

Question 2

senior position special provisions

Answer 2

restrictive covenant (confidentiality)

termination clause, responsibilities, reference to ER policy manual

Question 3

contra proferentem

Answer 3

courts may interpret language contrary to interest of dominant party (against the preferences of the ER) if clause is unduly onerous on EE

to benefit the EE b/c ER is assumed to be in a stronger position than EE.

Question 4

Contract may be voided due to ___

Answer 4

1. unconsciounability (contrary to public’s values)
2. duress (contradict concluded based on threats)

if ambiguous (unclear) obligations courts may rely ‘past practices’ to interpret words

Question 5

constructive dismissal definition

Answer 5

quit due to intolerable working environment including modification of duties

Question 6

What is the legal notice amount?

Is probationary period in common law?

ER show 3 things if no cause during probation

Answer 6

if employed

0-3 months: provide no notice

3 months - 1 year: provide 1 week of notice

1 year + 2 weeks

Not in common law must be expressed in contract

1. EE given reasonable opportunity
2. ER found EE unsuitable for job
3. decision based on honest, fair & reasonable assessment of job skills

Question 7

severability clause definition

Answer 7

if any clause in contract unenforceable, clause be severed from contract but remainder of contract is enforceable

Question 8

if court rules you don’t have just cause when you said you had just cause, what happens to restrictive covenants?

Answer 8

voided

Question 9

entire agreement clause definition

Answer 9

if the contract is signed, the contract is entirely agreed to. No prior conversations or promises are binding

only what is in contract is binding

Question 10

Golden parachute definition

Answer 10

provides substantial economic compensation if executive’s employment is terminated for reason not connected with them - merger/take over

in order to induce executive to act in interest of ER during transition

Question 11

inclusion clause definition

Answer 11

contract may be amended during employment and give employee 1 month notice…only after proper consultation with employee