Legal Question in Business Law in Massachusetts

I signed a contract that states if I leave before 3 years I must pay back 3600.00 for advertisment fee she spent promoting me. I was preesured in to signing this and know I have been diagnosed with an illness. Is this contract binding?


Asked on 7/28/09, 9:50 pm

3 Answers from Attorneys

from the little information that you have described, the contract is binding.

You never define what you mean by being pressure, and the best evidence of the value and meaning of a contract is to read it.

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Answered on 8/02/09, 10:07 pm
William Harrington Law Office of William T. Harrington

Are you from a foreign country and did your employer sponsor you in coming over and incurred expenses in doing so? I only ask as what you state seems very unusual and I have only heard of similair contracts in this context. If you were sponsored to come here from a foreign country, there is a federal statute that limits what an employer can seek in reimbursements. I have dealt with the statute before, but offhand, do not recall what it states exactly. However, my guess is, if that situation applies to you, then the employer is calling advertisement fees what it can't recover under the federal statute. If you are not a foreigner sponsored by your employer on a work visa, then I still think the contract has some problems with enforcebilty. This is because liquidated damages provisions in contracts that act as penalties are not enforcible in Massachusetts. However, when the amount of the liquidated damages is a reasonable measure, at the time of the contract, of expected damages for a breach, then the liquidated damages provision will be enforced. My problem with the agreement here is, even if the employer incurred $2,600 in advertisement fees (which seems very doubtful), I don't see how the reimbursment of expenses is damages unless the employee only worked a very short amount of time before quitting. Please call me if you wish to discuss further.

Bill Harrington, 617-426-7400.

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Answered on 8/03/09, 12:27 am

It may or not be binding on what the promotional cost is for. If it is an advertisement to recruit you, the damages would seem to be excessive and therefore unenforceable. If you are leaving due to illness and not because you are simply looking for a new job, then I do not think as a matter of public policy the provision will be enforceable. However, without more facts and reading the language of the agreement, I can't comment.

Likewise, the agreement would have to been signed at the time of employment, if they had you sign it afterward it would not be enforceable without some kind of promotion or payment.

Good luck.

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Answered on 8/03/09, 3:57 pm


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