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Final

SOS Final Review.pdf

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Department
Business
Course
BU231
Professor
David Scallen
Semester
Fall

Description
BU231 EXAM AID Tutor: Kristen Tatters 1 Agenda 1.  Requirement of Writing 2.  Interpretation of Contracts 3.  Privity of Contract: who should I sue? 4.  Assignments of Rights 5.  Breach of Contract 6.  Remedies for breach of contract 7.  Bailment 8.  Agency 9.  Employment Law 10.  Internal responsibilities of a corporation 11.  External responsibilities of a corporation 12.  E-Commerce 13.  International Law –  Tips & Tricks 2 Requirement of Writing 3 Is Writing Necessary? •  Yes, in some cases. •  Another way to get out of a contract. •  Government has decided that some contracts need to be written. –  Statute of Frauds •  Must plead the statue –  Consumer Protection Act Statute of Frauds •  The types of contracts that need to be in writing: –  Guarantee (guarantor of contract) –  Executor’s Promise to pay the debt of an estate –  Consideration in Marriage (pre-nuptial) –  Interest in Land (Deed of land – land outlives you) –  Contracts >1 year –  If there is no writing, then contracts are UNENFORCEABLE •  neither party may sue on the contract, however it does still exist this is different than a void contract… may still have some legal implications! How Much Writing Is Needed? • All essential terms are needed: –  Names; –  subject matter; –  Consideration (with the exception of a guarantee); –  Payment details; and –  Signature of the defendant only. –  Need not be in a single document; several writing notes may be taken together to satisfy requirements Consumer Protection Act • Contracts between Business and Consumer– goods & services • Types: –  Future Performance –  Time Share –  Remote –  Personal Development –  Internet –  Credit & Direct Sales –  Leasing •  Consumers are not bound unless the business has complied with requirements of regulations 7 Interpretation of Contracts 8 Interpretation of EXPRESS Terms Two Approaches to Interpretation: 1.  Plain Meaning: Look up the meaning in a dictionary. 2.  Liberal Approach: Look at the whole contract/ previous contracts to see if there is a hint in meaning. Stresses circumstances surrounding contract. •  Trade Usage: If there are particular industry terms that represent the wording (I.E. Scuff sanding is a light sanding) •  Contra Preferentum: Means that preference is given to the non contract writer in a standard form contracts as the writer could have made the contract “as they wanted” 9 Parole Evidence Rule • Parol Evidence –  information about negotiations outside the written contract –  Examples: earlier drafts of the contract, previous offers, letters, emails, phone messages –  This is often used to prove misrepresentation, duress, mistake etc • Parol Evidence Rule –  This evidence may not be used to add a term to an existing written contract. 10 Exceptions to Parol Evidence Rule 1.  Written contract is not the entire agreement •  Party must show that written document was not intended to contain whole contract •  May introduce evidence of oral terms 2.  Outside term is a collateral contract (has its own consideration) •  A separate agreement between the parties made at the same time as, but not included in, the written document •  Collateral contract can be enforced as separate contract – requires separate consideration •  Example: House sale and garage repairs how could this contract be enforced 11 Exceptions to Parol Evidence Rule 3.  Conditions precedent to the contract –  is any set of circumstances or events that parties stipulate must be satisfied or happen before their contract takes effect –  Doesn’t need to be in writing, even if it falls within Statute of Frauds or Sale of Goods Act –  If the party claiming that a condition precedent was agreed on and not met can produce evidence to support the claim, a court will recognize it and declare the written contract void 12 Interpretation of IMPLIED Terms • Implied term –  A term not expressly included by the parties in their agreement but which, as reasonable people, they would have included had they thought about it –  If it is obviously necessary to accomplish purpose of contract –  E.g. Tire purchase case 13 Exemption Clauses •  Being exempted from terms or the entire contract, as stated as a term •  Notes about exemption clauses: –  Must be brought to attention of other party –  Likely upheld, if industry practise –  Sufficient notice is needed –  Contra Preferentum applies 14 Privity of Contract: Who can I sue? 15 Who can I sue? • Answer: –  The people who made the promises –  Parties to the contract –  This relationship between parties to a contract is called: Privity of Contract 16 QUESTION A, a carpenter, owes $4000 to B. A offers to renovate C’s kitchen if C promises to pay off A’s debt to B. C accepts the renovation and, A completes the renovation. If C fails to pay B what would have to happen for B to recover $4000 based on the Privity rule? 17 ANSWER 00 deb t B $40 A no Privity of contract C 18 Vicarious Performance • Vicarious performance –  A third party performs on behalf of the promisor who remains responsible for proper performance –  Promisor may only employ third person to perform work on his behalf when personal performance by him was not reason promisee entered into contract –  This follows the Privity rule! 19 Exceptions to Privity Rule Novation •  The termination of one contract and the creation of a new contract with the same or similar terms to introduce the 3 party to the contract –  Releases original party •  Phillip has a bookstore. His supplier is Amy. Phillip retires, sells his store to Hubert. No contract between A and H, would have to sue through each Phillip. •  Novation: they agree to cancel original contract and Amy and Hubert create a new Contract. Now if Hubert screws up, Amy does not have to sue Philip who would sue Hubert, she can just sue Hubert. P X A H 20 Exceptions to Privity Rule • Trusts –  Where property has been transferred to a person who administers the property for the benefit of another rd –  The 3 party who is obtaining the benefit has a “beneficial interest” in the property and has the right to enforce the trust agreement as the “true owner” of the property • Example -Rich guy (seller) creates a trust, creates contract with trustee, in which it is for a beneficiary for children/ grandchildren… they can sue about the trust 21 Exceptions to Privity Rule • Insurance –  Insurance pays a third party beneficiary, if they do not pay, then beneficiaries can sue the insurance company for breach of contract • Land –  If tenant as a rent agreement with a landowner and a landowner sells to a new owner, contract still stand between current tenant and new owner 22 Assignment of Rights 23 Assignment •  Transferring the right to collect a benefit onto a third party. •  Why would you do this? –  A right to enforce a contract has value unto itself •  Example: A company is having cash flow problems because their accounts receivable are not being collected quickly enough. –  Right now, they have $10 000 in accounts receivable waiting to be collected. –  They sell the right to enforce these sales contracts to a collections agency for $8000. –  The agency will make $2000, and the company gets $8000 in cash sooner than they would have gotten the $10 000. 24 Two Types of Assignment • Equitable assignment: transfer part of the benefit only and assignor must be a party to the lawsuit • Statutory assignment: –  3 conditions need to be met: • Absolute assignment (not partial) • In writing • Promisor received notice (they do NOT have to give consent) **If the promisor ignores the notice and pays the assignor, then the promisor will be in breach and will be required to pay again to the assignee 25 Defences to Assignment • Subject to the Equities (all things need to rd be equal for assignee (3 party)/promisor) • Qualifications are: –  Assignee can be in no stronger position in the lawsuit with the promisor –  Any defence that would have worked against the assignor works against the assignee. 26 Negotiable Instruments • Bills of Exchange Act • Special category of asssignments • Written contract containing promise to pay specific sum to a person –  Cheques, promissory notes, etc • NOT subject to the equities, are subject to the RULES OF PRESENTMENT. –  Means no need for notice of assignment. 27 Breach of Contract 28 Implications of a Breach •  A breach of contract may discharge the contract, but not always. –  Minor Breach: • A breach of a minor term of the Contract • OR of a major term in a minor way • What happens? Both parties remain bound to the contract, but the non-breaching party can sue for damages where it has incurred a loss –  Major Breach: • A breach of the whole contract • OR breach of a major term, such that the purpose of the contract is defeated • What happens? Non-breaching party can opt for discharge of the contract – the breaching party remains bound 29 How a Breach may Occur • Three ways that it can occur: 1.  “Express Repudiation” – saying you’re not going to perform 2.  One party renders performance impossible 3.  Failure to perform or inadequate performance 30 Express Repudiation •  A declaration by one of the contracting parties to the other that it does not intend to perform as promised • Non-breaching party can: 1.  Terminate contract but reserve the right to sue for damages 2.  Insist on performance and wait for non- performance •  They would do this if it were a major breach, that way they would be relieved of their duty to perform and force the other party to perform •  But, they risk a frustrating event happening as relieving the repudiating party from performance31 Rendering Performance Impossible • This is only considered a breach of contract if it is due to willful or negligent act that makes performance impossible –  E.g. Sally sells her car to Bob for $30,000 and before she delivers on this contract sells her car to George for $35,000. –  This is a willful act the makes it impossible for her to fulfill her contract with Bob because she is no longer in possession of car 32 Exemption Clauses • Term in the contract that protects a party from being sued for a breach of some sort; would be specified in contract –  Example: Rafael really wants to sell his book at the Chapters. He tells Chapters that they are exempt from liability if the books are damaged while under their care, to make the contract more favourable for Chapters. 33 Remedies for Breach of Contract 34 Remedies for Breach • What can you do if you are the non- breaching party when the contract has been breached? • Types of remedies: –  Damages: money –  Equitable Remedies: a specific performance when money is not sufficient •  Ex: a unique piece of land 35 Types of Damages •  Expectation Damages: Expected profits from the time of contract formation •  Opportunity Cost: The lost chance of making a similar contract with a different party •  Consequential Damages: Reasonably foreseeable damages that flow from the breach •  General Damages: Damages that are not quantifiable •  Reliance Damages: Damages for wasted effort •  Liquidated Damages: An amount agreed to be paid in damages by a party to a contract if it should commit a breach •  Nominal Damages: Where loss sustained is negligible. Some may sue on principle to get a precedent set. General rule: If you’re unsure if a certain type of damage applies, just ask for it. The court may say no, but they won’t add damages if you don’t ask for them. 36 Bailment Bailment •  Transfer of possession of personal property without a transfer of ownership •  Not including land but can include documents (notes, bonds, stocks, etc.) •  Transferor / owner of property is the bailor – Still have possession, and that the item will go back in the hands of the bailor eventually •  Party that receives custody is the bailee •  Can be contractual, non-contractual, or involuntary bailor bailee Owned by bailor Sub-Bailee –  A sub-bailee is when a bailee gives the objects to another person • Eg. Lady took her ring to a jewelry store in Sault-Ste Marie. Jeweler was unable to do the repair on the ring and gave it to another jeweler in Toronto. The ring was valued at $11,000. When the ring was couriered, the custom of the trade was to list the value as $100 (to limit insurance costs). The ring was damaged and the lady sued everyone. As bailees (Sub or regular), they all owed a duty to the lady. bailor Owned by bailor bailee sub-bailee Bailment • Contractual –  “Bailment for value” -Designed to benefit both parties • Non-Contractual –  “Gratuitous” - Can benefit either or both parties –  No intention to create legally-binding relationship –  E.g. lends car gratuitously to neighbor • Involuntary –  E.g. customer leaves a coat behind at restaurant, restaurateur becomes bailee and cannot refuse to return coat to customer 40 What to Prove? •  Plaintiff must prove : 1.  Was in good condition when gave to them 2.  What was the condition when you got it back? •  Bailee must prove: 1.  They met the standard of care • Which of the three types of bailment is it? –  places the burden on bailee of showing they were not negligent, must offer a reasonable alternative explanation (reverse onus) • there, you need only establish the condition of the carup when you dropped it off, and the condition it was in when you received it Bailee’s Duty of Care –  All bailees have a duty of care to take care of the possession –  In contract, often the terms (express or implied) outline the duties and liabilities of the bailee • Exemption clauses written into contracts for liability of bailees are construed very strictly by the court • If goods are damaged for any reason not related to performance related to the contract, bailee is not protected by the exemption clause Standard of Care –  Gratuitous bailment for benefit of Bailee •  Highest standard of care •  Bailor receives no consideration, thus the bailee should compensate the bailor when damage occurs to goods as result of any slight carelessness •  Eg. “Can I borrow your lawnmower?” –  Gratuitous bailment for benefit of Bailor •  Lowest standard of care is owed on the gratuitous benefit where the benefit is to the bailor (Not being paid for the favour – No benefit to you, just the bailor) •  Bailee should not be under a particularly high duty towards bailor because the bailee is doing a favour for bailor •  Eg. “Can I put my car in your garage for the winter?” Standard of Care –  Bailment for Value – Contractual bailment – Standard falls between gratuitous bailment for the bailor and bailee •  Falls between the two above where the bailee for value is expected to take the same care of goods as a prudent and diligent person should take care of goods •  Eg. “My car will be at your shop while you service it” Standard of Care • Factors to consider when determining Standard of Care: –  Type of goods –  Value of goods –  Extent of promise to look after goods –  If goods are easily damaged or stolen 45 Standard of Care Scale Gratuitous bailment for benefit of bailee Highest Standard of Care Gratuitous bailment for benefit of both Contractual Bailment Bailment for Value Gratuitous bailment for benefit of bailor Lowest Standard of Care 46 Remedies for Bailee •  Liens give the bailee a right to retain possession of goods until the bailor pays what is due for the services –  Repairers, innkeepers, carriers, lawyers/bankers have the right of liens by common law –  Storage bailees have it by statute Can I have it back? No. Because Liens. bailor bailee Remedies for Bailee Right of Sale –  There is no common law right of sale – The only way to get this right is when its under the statue or you contract for it –  For a gratuitous situation, you cannot get the right of sale –  Bailees must follow these steps to exercise this right: 1.  Certain time needs to elapse after payment is due (Notice is set-out – Pay up or we are going to exercise our right to sale) 2.  Advance notice must be given to bailor of the intention to sell 3.  Sale must be advertised 4.  Sales must be a public auction –  Note: The proceeds of the sale first go to reimburse bailee for costs of sale, then the overdue charges, any in excess goes back to original bailor Special Types of Bailment 1)  Storage and Safekeeping Examples: warehouse, bank safety deposit box – but the owner is required to exercise due care to protect thet goods from harm –  Not customarily obliged to insure goods against fire, but when expressly contracted to do so and they fail, they owe the bailor the insured value of the goods Special Types of Bailment 2) Transportation –  Gratuitous Carrier – Help your friend move down the street •  “Reasonable person” SoC – don’t do it all the time, reserve the right to choose their clients •  “Competent professional” SoC –  Common Carrier – Move anything anywhere – Anyone that holds themselves out to public as a carrier to get rewards or payment – They are an insurer and a bailee. •  Highest SoC Special Types of Bailment Common Carrier Continued… •  Liability: –  Shipper (Bailor) need only prove that the carrier received the goods in condition, and delivered them in bad condition. Unless otherwise agreed, common carriers are liable for the full value of the good –  Thus, the burden is on the carrier to establish cause of loss within a recognized defense •  Defenses against liability: –  Act of God –Natural catastrophe: Fire is not an act of god, unless lightning started – Cannot work as a defense if the carrier took the risk known about the potential damage it may cause –  Inherent Vice in the Goods – Something is wrong with the goods itself – goods have defects –  Default by Shipper -Contract contains implied promise that the goods are safe to carry, thus make the movers pack everything themselves -- Implied duty on the shipper that the goods must be safe for transportation Special Types of Bailment 3) Innkeepers –  Innkeepers are any people who maintain a establishment offering lodging to any member of the public – As long as you can pay, you can stay there –  Must keep the belongings of their guests and patrons safe. They have duty to take reasonable care of the guests belongings – They must avoid negligent acts of themselves and their employees from suffering from lost or thief –  Innkeepers are typically only liable where the goods have been stolen, lost or injured through the willful act, default, or neglect of the innkeeper or an employee, or where goods have been deposited expressly for safekeeping Special Types of Bailment –  The Innkeepers Act limits their liability to $40 as long as: •  They display a copy of the act •  They provide safe-keeping when it is requested by the guest –  If a customer specifically states that they would want something to safe-keeping, the inn is fully liable –  BUT they are free from liability if they can prove that it was the negligence of the guests for their loss –  Gives the right to sell the goods of guests by public auction if their bills remain unpaid for specific periods Special Types of Bailment 4) Repairers –  Repairer is Bailee for value- contract and seen as a professional –  Failure to performance = Breach of contract •for service done and can sue for damagesds, might not have to pay –  Standard of care is same for warehouse –  Ordinarily, a bailor gives repairers implied authority to order replacement parts unless stipulated in contract –  Common law gives the repairers a lien on goods –  In Ontario, they also have right of sale if payment is three months overdue Special Types of Bailment 5)  Pledge or Pawn •  Pledge or Pawn is a bailment of personal property for security for a repayment for a loan. • pawnbroker)s pledgor; creditor is pledgee (eg. Bank, •  A Pledgee is a bailee for value and must exercise course of its businessable in the ordinary and proper Pledges of Pawn •  Pledgee’s obtain liens on the property pledged, and the pledgor gives authority to the pledgee to sell the pledged goods upon default –  They can obtain the costs and debts, but any surplus funds remaining belongs to the pledgor Agency Agency Relationship Principal Agent Third Party Agency Agreement Agreement The Agent enters into agreements with the Third Partyon behalf of the Principa. l 58 Nature of an agency •  Agency is a relationship in which one person, known as an agent, is authorized to bring its principal into contractual relations with third parties •  Agents are people who enter into a contractual relationship for their principal under the principal’s authority •  They act for the principal •  They owe the principal a fiduciary duty Agents •  Dependent Agents – Act exclusively for a single principal –  Example: Insurance agents usually represent only one insurance company. They will only sell you insurance from that company. –  separates of agency and employment may be entirely •  An agent need not be an employee just as an employee need not be an agent Agents •  Independent Agents – Not an employee and acts on behalf of several principals or clients. –  dealing with purchases of land, buildings, sharesr their clients when –  So called real-estate agent does not have authority to unilaterally sell the property of a client and thus is not a true agent Effect of agency –  In a properly formed agency relationship, a contract is created between the principal and the third party and not between the agent and the third party even though they carried out the negotiations and accepted the offer. –  Per: ____________ -> makes its clear you are representing company, you are not the principal Agency relationships •  Any person who has he capacity to contract may appoint an agent to contract on his behalf •  An agent’s power to contract on behalf of her principal is limited to the capacity that the principal possesses –  Agent and Principal ▯ Agency Agreement • It is a normal contract • The authority of the agent must be expressly set out in the agreement –writing includes issuing notes and signing checks, they must be in –  Power of attorney: Able to sign the documents on behalf of the principle – This also must be in writing Duties of Agent to the Principal 1) Duty to comply with the contract –  Determined by terms, explicitly and implied of the contract –  Punished by breach of contract –  Agent has a duty to be diligent in keeping her principal informed about important developments 2) Duty of Care –  Agent owes duty of care to principal – transactions of the principalnd skill when dealing with • Will depend on their own degree of knowledge, skill and their task Duties of Agent to the Principal 3) Personal performance –  Cannot delegate agency status to another party without telling the principal 4)  Good Faith –  Fiduciary relationship exists between principal and agent –  Obligation to act within the best interest of the principal •  Example: If an agent has been authorized to buy a property at a certain price is bound to tell principal if she finds out it can be purchased at a lower price Duties of Principal to Agent •  Any principal that uses agent implies that they will reasonably pay the remuneration by quantum merit or whatever was enlisted in the contract •  Translation: –  You will pay them for their services –  You will reimburse their expenses The Authority of the Agent • Actual –  Express –  Implied • Apparent –  Usual Authority –  Holding Out 66 Actual Authority •  Express –  Authority giving expressly, orally or in writing by principal •  Implied –  incidental to express authority since not every single detail of an agent's authority can be spelled out in the written contract •  For example, if you are at a restaurant and your waitress tells you that she can give you a free beverage if you pay for an entree, she has made a contract with you on behalf of the business by which she is employed. It is implied that she is given the authority to do so by the fact that she is the sole employee of the business who has been designated to complete a transaction with you. •  Continuing the scenario, suppose that a manager were to come to your table and inform you that your waitress has made a mistake; that the "free beverage with paid entree" offer has expired and that you will be expected to pay for your beverage. At this point the business is in direct violation of a legally enforceable contract made between you, the client, and their employee. 67 Apparent Authority •  Apparent Authority –  In apparent authority, circumstances may make it appear to third parties that an agent has authority to make the bargain, when in fact they don’t have any real authority –  Agents may exceed their real authority by venturing into sideline activities or act in violation of special restrictions •  Usual Authority –  Apparent authority is frequently the same as actual, implied authority; but if there is restriction on the agents USUAL authority and third party does not know, she will possess APPARENT but not actual authority –  So when can a principal legally refuse to be bound by a contract? •  Test is whether a third party should have been aware of the agent’s lack of authority, or had reason to be suspicious •  A third party is expected to act with a reasonable measure of business acumen and common sense E.g. a partnership with a car repair business. Garrod put express provision in partnership that there would be no used car sales as part of business. Jarrod sells a car and runs away with the profits. They recover the car and innocent purchaser brings an action for breach of contract against Garrod. The court ruled that Parkin was acting as an agent for Garrod and since used car sales is a common practice of car repair shops he had apparent authority. Holding Out •  Even when an act or contract falls outside usual authority of a particular agent, agent may still possess apparent authority because it has been represented by the principal of authority •  Holding out: When a business impliedly or explicitly represents someone to be their agent •  The principal will not be permitted to deny the existence of an agency and will be bound by the contracts •  Example: Jewelry store agent with $25,000 limit Agent by Necesscity –  Agent has to act in dire circumstances and it is not recognized as legitimate authority • Eg. Neighbour’s roof collapses –  While there may be a moral duty for the principal to ratify, as a general rule our law does not force liability on a person against their will Ratification •  Beyond the agents powers but subsequently approved •  When principal adopts this contract it is as if the agency relationship had existed from the beginning Contract may be ratified: –  Expressly or implicitly –  Within a reasonable time –  By a named principal –  If the rights of an outsider are not affected –  If at the time of creation and ratification, principal was capable of make the contract 71 Who Is Liable? •  An agent should have no liability in a properly constructed contract because the contract is between the principal and third party •  An agent alone is liable if they act as the principal themselves. •  Either are liable if the agent did not disclose their agency status. –  3 party can sue agent or principal (but not both) •  Either are liable if the agent acts as the principal, but then discovers the actual principal –  3 party can sue agent or principal (but not both) – the lawsuit and sue the real principal. litigation, can terminate Liability for Torts –  If agent is guilty of fraudulent misrepresentation (false statement that persuades them to make the agreement), the contract becomes voidable and the third party may rescind it •  Can also sue for deceit –  If the agent was operating within apparent authority, the third party can sue the principal as well as the agent for deceit –  Agents can be liable to negligent misrepresentation because they owe a duty of care to the third party. Breach of Warranty of Authority •  Warranty of authority: acting as if (or, warranting that) you have the authority of an agent • There is no contract if a person holds themselves out as an agent but has no authority (actual or apparent) and principal doesn’t ratify • In this case a third party can take the so-called agent to court for a tort known as breach of warranty of authority • Damages are awarded to put the third party in the position in which they would have been had misrepresentation not occurred (rescission) Terminating an Agency Relationship •  Authority is terminated when: –  End of time specified in the agency agreement •  With no specified time, it can be terminated by any party at any time. –  Completion of particular project for which agency was formed –  Notice by principal or agent that they wish to end the agency –  Death or insanity of principal or agent –  Bankruptcy of principal –  Event that makes the performance of the agency impossible –  Loss of capacity •  It is the responsibility of a principal to inform third parties that the agency has ended. If not, you are bound by their contracts Employment Law Relationship of Employer and Employee •  direct the work of another (the employee)r) has the authority to •  Established by a contract •  employer and employees what governs the relationship between the Terms of a Contract •  Job description •  Rate of pay •  Term: –  Fixed term: Fixed period of time, Will come to its own and natural end –  Probationary term –  Indefinite hire: Hired for an indefinite period of time, Employment at will, Can hire and fire at their will with no reason –  Option to terminate: You must have notice, Will be put right into the contract Employees vs. Ind. Contractors What is Employment? • Relationship to agency –  Separate – may be either / or –  Often both • Contrasted with independent contractors –  An employer is contractually liable for contracts made by employee not by an IC –  An employer is vicariously liable for the torts of an employee but not of an IC Employees vs. Ind. Contractors • How can we tell? •  Control of employee by employer •  ICs generally have ownership of tools of production •  Paid by the hour vs. by project completion •  Risk of profit or loss (full liability for contractor) •  Exclusivity and duration •  Employees can only work for one business, often for an indefinite time, contractors are gone when contract is complete •  Source deductions and expenses •  Employer takes of EI, CPP •  Benefits being paid •  How independent are they? 79 Employer’s Liability •  Liability in Contract –  Employers are held responsible for improper work done by employees •  Liability in Tort –  A business is vicariously responsible for damages to any third party for the consequences of any tort that an employee commits in their course of employment –  All the injured party need establish is that the employee caused the damage while engaged at their work •  E.g. Adair is employed by Walmart and he negligently collides with another vehicle while making deliveries. Both Adair and Walmart can be sued by the other driver –  Employers can still sue the employee if it deems it worthwhile Amending Terms of Employment Contracts •  The ability of an employer to amend the terms of the employment contract will be impacted by the terms of the contract •  A unilateral substantial change to an important term (I.e. salary, job position…) can result in constructive dismissal –  Constructive dismissal - an employee claims wrongful dismissal based on the unilateral change of the terms of employment which amounts to repu
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