breach of contract

[kgerickson]

I am in California and my employer laid me off on 6/20/01 and closed the office for financial reasons. I have a written agreemeent dated 3/1/01 saying that if I agreed to stay with the company (in light of their financial trouble) they would pay me a bonus every quarter in addition to my regular wages up through and including 12/31/01. Do I have a valid breach of contract claim. Is their financial situation a defense to the case?

 

[JETX]

Without the ability to read the contract to see if there are any conditions that would void further obligations, we are really not able to answer you question factually.

Personally, I would be surprised if there weren't some provision in the contract that would cease its validity in the event of company closure. For example, is there a condition that you have to work in order to get 'regular wages'?? If so, then no work, no wages, and no 'bonus every quarter in addition to my regular wages'.

However, I will offer the following general opinion... even if you do have a valid contract for employment in the event of company closure, it might be pretty much unenforcable. Your contract is only valid if there are assets to pay you (or to seize in the event of a judgment). Assuming that there are NO company (corporate??) assets left, who do you propose to collect your salary and bonus from???