Question

In: Accounting

Sam is told by his employer that if he does not sign the new employment contract...

Sam is told by his employer that if he does not sign the new employment contract with the company at lower wages, she will have him arrested for stealing items from the company. Sam signs. Is the contract enforceable?

Solutions

Expert Solution

Contract : is an legally enforceable agreement between two parties which is agreed by both of them without any undue influence, foregry, misrepresentation, coercion etc. If any contract is made using these unlawful means then such contact stands void and is not enforceable. There should also be free concent of bpth the parties to contact. There can be spoken or written agreement.

The term here should be explained is Coercion because in the given case coercion is used to make the contract.

Coercion : any harm or threat of harm is done to make any party agreeable to sign the contract is called contract due to coercion. And if any party signs any contract due to coercion the such contact is not legally enforceable and stands void.

In the given case Sam is told by his employer that if he does not sign the new employment contract with the company at lower wages, she will have him arrested for stealing items from the company.

And now Sam signs the contract.

This contact shall stand unenforceable because free concent of Sam was not their in such contract and coercion was used on Sam to agree on such contract and the law clearly states that any contract made using coercion is not enforceable.

The coercion in this case is that Sam was forced to sign the new contract on lower wages otherwise his employer may get him arrested for stealing items from the company.  

So, therefore the contract is not enforceable in this case.


Related Solutions

William is attempting to sign in to his operating system but he receives an error message...
William is attempting to sign in to his operating system but he receives an error message stating that he has entered an invalid password. How can he solve this problem?
Jimmy is in a car accident. He can't open his mouth and has been told that...
Jimmy is in a car accident. He can't open his mouth and has been told that he suffers from the following: black eye, broken nose, broken cheek, broken upper jaw, damaged eye socket, and punctured lung. Describe exactly what structures have been affected by his car accident.
The new director of a local YMCA has been told by his predecessors that the average...
The new director of a local YMCA has been told by his predecessors that the average member has belonged for 8.7 years. Examining a random sample of 15 membership files, he finds the mean length of membership to be 10.2 years, with a standard deviation of 2.5 years. Assuming the population is approximately normally distributed, and using the 0.05 level, does this result suggest that the actual mean length of membership may be some value other than 8.7 years? Please...
David agrees to ensure his premises with ERC Insurance has told that he would be comprehensively...
David agrees to ensure his premises with ERC Insurance has told that he would be comprehensively covered against all risks. The contract includes a clause that David cover will only continues if he obtains an annual fire certificate to the effect of all reasonable precautions against fire has been taken. David sings the contract without reading it and consequently does not obtain the requisite fire certificates each year. Some years later the premises are destroyed by fire and ERC Insurance...
Andrew’s doctor told him he is not meeting his RDA for vitamin C based on what...
Andrew’s doctor told him he is not meeting his RDA for vitamin C based on what Andrew told him about his eating habits. Andrew is worried that he will develop scurvy. Can you assume that he is at risk for scurvy if he isn’t consuming the RDA for vitamin C? Why may the doctor’s assessment be flawed? How can you determine if Andrew isn’t consuming enough vitamin C? What would you tell Andrew to calm his fears?
Case : A 64-year old man who was recently told by his physician that he needed...
Case : A 64-year old man who was recently told by his physician that he needed to begin taking insulin for his diabetes is afraid of needles. He has had diabetes for 20 years and doesn’t think this new plan is necessary. He is very concerned about administering his own injections. The provider responds by instructing the patient on the physiology, because she believes the foundation for diabetes education is to understand how the illness works. Question1: Think back to...
An employer is hiring a new employee and wants to ensure that the new hire does...
An employer is hiring a new employee and wants to ensure that the new hire does not have embarrassing, illegal, or inappropriate postings on Facebook. To qualify for the position, applicants are required to share their Facebook login and password with employer. Is this legal in Oklahoma? Elaborate in your response - please do not give me a yes or not answer. Do all states prohibit this conduct? What is your opinion on Oklahoma law?
Jason has an opportunity with his current employer to work overseas for five years. If he...
Jason has an opportunity with his current employer to work overseas for five years. If he takes this option, Jason would move overseas, while his family would stay in Canada. In this case, Jason would visit his family often, returning to Canada for his six weeks of vacation and as many holidays as possible. Jason is unsure how working overseas will impact his residency in Canada for tax purposes. Explain the difference between deemed resident, ordinarily resident, and non-resident for...
very year, management and labor renegotiate a new employment contract by sending their proposals to an...
very year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses the best proposal (effectively giving one side or the other $5 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $200,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time....
Flag Mr. Sam Golff desires to invest a portion of his assets in rental property. He...
Flag Mr. Sam Golff desires to invest a portion of his assets in rental property. He has narrowed his choices down to two apartment complexes, Palmer Heights and Crenshaw Village. After conferring with the present owners, Mr. Golff has developed the following estimates of the cash flows for these properties. Palmer Heights Yearly Aftertax Cash Inflow (in thousands) Probability $ 30 .2 35 .2 50 .2 65 .2 70 .2 Crenshaw Village Yearly Aftertax Cash Inflow (in thousands) Probability $...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT