What is my obligation to an employee contract?
I signed a contract with one company but then got a better offer from someone else. Am I legally bound to the first company? Can they sue me if I back out? I would sue them if they backed out on me!
Answers:
Well on a legal level you are bound, but on a practical level, it would be hard for the 1st company to do anything. This is because its only remedy for breach of contract will be damages. A court won't force you to carry out your contract, because its a general principle that contracts of personal service won't be subject to an order of specific performance.
Since they can only get damages, they also have to prove the amount of damage. This amount will be a measure of their loss compared to if the contract had been carried out. They also have a duty of reasonable mitigation (e.g. they have to try and hire someone else). It would be hard to prove any amount -- they can simply hire someone else for the same salary. Unless you're particularly unique (e.g. sports star, movie star) or are especially cheaper than anyone else for the same role.
If they can't prove damages, they will get only nominal damages, $5 or similar. Not worth their time and money.
So I guess the only cost to you is ill will from backing out.
If it is for a definite period, then it is possible to be sued. Howevever, such suits are rare and are almost never sucessful unless you have an ability that is unique such that no one else could fill the position. The only times those are successful are with entertainers.
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