CLASS _6 Contracts winter 2008

Class 6 contracts winter 2008

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Unformatted text preview: CONTRACTS . PERFORMANCE BREACH REMEDIES CASE Nextel South Corp. contacted Clark Consulting, an executive search company, about finding an HR manager. No final contract was signed. Clark screened and interviewed three hundred candidates. Clark provided Nextel fifteen candidate summaries, including one for Dan Sax. Nextel hired Sax for the position at a salary of $75,000. Sax started work on June 25, 2001, took two weeks' vacation, and quit on July 31 in the middle of a project. Clark spent the next six weeks looking for a replacement, until Nextel asked Clark to stop. Clark billed Nextel for 20% of Sax's annual salary typical arrangement. Nextel refused to pay. COURT DECISION The state appellate court found an implied contract because Clark spent months evaluating candidates at Nextel's request, and Nextel hired a candidate specifically placed by Clark. Clark then worked for six weeks to find a replacement, stopping only when Nextel terminated their relationship. Under the theory of quantum meruit, the court entered a judgment in favor of Clark for the amount that Nextel would have paid under its typical agreement. Court wants to p...
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This note was uploaded on 04/17/2008 for the course ACCT 2701 taught by Professor L.phillips during the Winter '08 term at CSU East Bay.

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