ARE18 homework 6

ARE18 homework 6 - material breach of contract and when the...

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ARE 18 February 16, 2011 Homework 6 10-7. Roger Banaster signed a covenant not to compete which prohibited him from working for a "conflicting organization" for eighteen months following his termination, but required Bemis, the company he was working for, to pay his salary if he was unable to find a job, "consistent with his abilities and education." Mondi Packaging, a Bemis competitor told Roger that they would like to offer him a job but could not do so because of the noncompete agreement. Bemis released Banister from the agreement with respect to "all other competitors other than Mondi" and refused to pay his salary. Nine months later, Roger finds a different job and decides to file suit against Bemis for the nine months pay he did not receive. The question was whether or not there was a
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Unformatted text preview: material breach of contract and when the appropriate remedy will be. Since Bemis made Roger sign a covenant stating that he could not work for competing companies and that if he were to be terminated they would pay his salary for up to 18 months while he actively searched for a new job worthy of his qualifications. Once they fired Roger and he found a job with Mondi, Bemis should have released him entirely if they did not want to pay his salary. However, since they released him to every other company except them, they are bound by their original contract to pay Roger the nine months salary pay that he was guaranteed under his contract with Bemis....
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This note was uploaded on 01/17/2012 for the course ARE 18 taught by Professor Maxey during the Winter '08 term at UC Davis.

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