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question
An employee was hired under a written contract to work for an employer for five years at a monthly salary of
$1,500. In addition, the employment contract provided that the employer would pay the employee an annual bonus "to be determined by the employer within two weeks after the year's profits have been ascertained. "At the end of the first year, the business showed a net profit of $50,000. Accordingly, the employer and the employee agreed that the employee should receive a bonus of 10,000. Once the profit had been calculated, the employer telephoned the employee and offered him a second-year bonus of 2,000. The employer refused the employee's demand and immediately terminated his employment. Following his dismissal, the employee brought suit for breach of contract against the employer. Which of the following is the most accurate statement?Plain-text mathematical notation (without MathML)
An employee was hired under a written contract to work for an employer for five years at a monthly salary of $1,500. In addition, the employment contract provided that the employer would pay the employee an annual bonus "to be determined by the employer within two weeks after the year's profits have been ascertained. "At the end of the first year, the business showed a net profit of $50,000. Accordingly, the employer and the employee agreed that the employee should receive a bonus of 5,000.Thisamountwassubsequentlypaidtotheemployee.Attheendofthesecondyear,thebusinessrealizedanetprofitof10,000. Once the profit had been calculated, the employer telephoned the employee and offered him a second-year bonus of 1,000.Theemployeerefusedanddemandedabonusof2,000. The employer refused the employee's demand and immediately terminated his employment. Following his dismissal, the employee brought suit for breach of contract against the employer. Which of the following is the most accurate statement?
Original LaTeX notation
An employee was hired under a written contract to work for an employer for five years at a monthly salary of $1,500. In addition, the employment contract provided that the employer would pay the employee an annual bonus "to be determined by the employer within two weeks after the year's profits have been ascertained. "At the end of the first year, the business showed a net profit of $50,000. Accordingly, the employer and the employee agreed that the employee should receive a bonus of $5,000. This amount was subsequently paid to the employee. At the end of the second year, the business realized a net profit of $10,000. Once the profit had been calculated, the employer telephoned the employee and offered him a second-year bonus of $1,000. The employee refused and demanded a bonus of $2,000. The employer refused the employee's demand and immediately terminated his employment. Following his dismissal, the employee brought suit for breach of contract against the employer. Which of the following is the most accurate statement?
choices
- The employee has a cause of action against the employer to recover a bonus for the second year in an amount to be determined by the court.
- The employer is excused for his obligation to pay a bonus, because of the unforeseen downtum in business during the second year.
- The employee is not entitled to any recovery, because employment contracts are generally terminable at will.
- The employee is not entitled to a bonus, but the employee can sue for loss of wages.
subject
professional_law
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