Legal Question in Business Law in California

termination of consultancy contract

I have a year contract as consultant with an SD based firm.

Its automaticly renewed in december each year for 12 months .

The agreement can be terminated with cause within 30 days notice if there is a material breach or the terms of conditions or if Company does not require Consultant services due to change in the company business prospects and plans. We are talking about 10K compensation.

Last week I recieved an e-mail and a phone call saying that I did not fullfill the obligations as mentioned in the consultant agreement . I materially failed to perform the obligation as specified in the original agreement with an offer of 35k. This is not correct.

The fact is that the company could end the agreement within 30 days written notice due to charge in this company business prospects and plans but they did not decide to do so. I recieved 3 e-mails and 2 mails from there laywer to sign the termination agreement ASAP and would recieve 35K.

According to California law what are my rights and what would you advise me to do. Sign it and take the 35k or fight it and recieve 10k.

A van de Star


Asked on 3/13/09, 3:49 pm

2 Answers from Attorneys

Cathy Cowin Law Offices of Cathy Cowin

Re: termination of consultancy contract

Lets see... they don't want you, they will not automatically renew next year (i.e. max continued compensation is $20K) and they're offering you $35K now in this economy? Am I missing something??? Have an attorney look over this "termination contract" to be sure there's not something onerous, but otherwise isn't the math in your favor?

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Answered on 3/13/09, 4:52 pm
Jan van Gilse Blenheim attorneys

Re: termination of consultancy contract

Dear Sir/Madam,

You ask what your rights are according to California (US)law. We are a law firm in Amsterdam, The Netherlands, Europe, so I'm afraid we can only advise according to Dutch law. I hope a Californian lawyer can answer your questions.

Kind regards,

Jan van Gilse

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Answered on 3/16/09, 5:01 am


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