In: Operations Management
Please IRAC format to answer the following:
Maggie responded to an advertisement placed by Dr. Williams, a doctor, seeking a nurse. After an interview, Dr. Williams offered Maggie the job and said he would either: (1) pay her $150,000 per year; or (2) pay her $120,000 per year and agree to convey to her a parcel of land, worth about $50,000, if she would agree to work for him for three consecutive years. Maggie accepted the offer and said, "I'd like to go with the second option, but I would like a commitment for an additional three years after the first three." Dr. Williams said, "Good, I'd like you to start next week."
After Maggie started work, Dr. Williams handed her a letter he had signed which stated only that she had agreed to work as his nurse at a salary of $120,000 per year.
After Maggie had worked for two years and nine months, Dr. Williams decided that he would sell the parcel of land and not convey it to her. Even though he had always been satisfied with her work, he fired her.
What rights does Maggie have and what damages might she obtain as to employment and the parcel of land? Discuss.
IRAC - Issue Rule Analysis Conclusion
Issue Damages for an oral contract concerning employment, and, a parcel of land
Rule
The Statute of Frauds and the Oral Promises of Job Security
At-will employment - employees can quit, and, can be fired; employment not for a set-term
Analysis
The oral contract can change the at-will status as the person may not be fired without a cause, and, if the person meets certain performance standards. An oral contract is difficult to prove in court. It can rise to an enforceable promise. Oral nature of promise renders it to Statute of Fraud defence.
There are clauses that need to be in writing for the clauses to be enforceable:
Conclusion
Considering point 4 & 5, Maggie cannot seek damages concerning the parcel of land, as the contract should have been a written contract.
For employment more than one-year presumption, there should be a written contract evidencing the same. Maggie cannot seek damages for being fired after two years, and, nine months.